What does this mean to you if you live in Chandler?
- Of the homes currently active today:
- 47.2% are Short Sales &/or Pre-Foreclosures listed for sale at an average price of $102.12 per sqft
- 12.18% have already been Foreclosed and are “Lender Owned” (aka REO or Bank Owned) at an average price of $96.93 per sqft
- 40.62% are normal listings, new term “Equity” sales and are asking an average price of $147.75
- What actually sold last month (closed escrow) in Chandler:
- 28.76% were Short Sales that closed at an average price of $99.58 per sqft
- 37.17% were REO’s that closed at an average price of $96.93 per sqft
- 34.07% were Regular listings that closed at an average price per sqft of $122.91
Seems that if you are wondering where your next mortgage payment is coming from, you aren’t alone.
Banks are finally beginning to see that they lose more money with a Foreclosure where they have to take over a property and remarket it to get it off their books. It makes more sense for them to work with people in distress by approving their short sales!
Many banks are trying to streamline their processes and that is why we are beginning to see more and more people opt for doing a Short Sale rather than stick their head in the sand and wait for the bank to come take back their asset (your home) in a Trustee Sale.
Many sellers are starting to come back out on the market again; but most need to reduce their prices to actually get their homes sold ($147 vs $122 per sqft). We are also seeing many investors purchasing distressed properties and flipping them for an immediate return on their investments.
Homes that aren’t in distress are still high in demand because:
- The homes are typically better taken care of and aren’t “stripped” or trashed like so many of the pre/foreclosure homes are.
- The buyer can avoid those headaches that the various Banks and Lenders out there give when it comes to negotiating price.
- The buyer isn’t having to send in multiple offers and compete with others looking for a bargain.
- Many buyers run out of time and patience to wait on the banks with the lengthiness of their current processes.
Are you interested in seeing what this graph looks like in your area? If so, click here to get started. If you let us know, we’ll send one to you for your area (this report can also be done by Zip Code). All of this data is provided by Mike Orr of the Cromford Report.