2009 Home Sales and Foreclosure statistics in Valley Center, CA. show an increasing number of “Shadow Inventory Homes” that banks are holding off the market, and increasing numbers of Short Sales.
Foreclosed homes aren’t coming back on the resale market as fast as banks are taking them, making me wonder just how long can lenders hold these homes off the market, and what will happen to prices if they are forced to sell these home quickly.
Take a quick look at this chart that really shows how many homes are in “Shadow Inventory” right now in Valley Center. There were 101 homes taken by banks in Foreclosure actions during 2009. 55 of those homes (the ones in blue) are already sold. 46 of the foreclosed homes (shown in red on the chart) are being held off the market by these lenders.
Almost half the homes taken in foreclosure are not yet on the market. This causes real concern for sellers in Valley Center. How fast will these homes come on the market? Will they continue to trickle them onto the market, or will they be forced to dump them on the market quickly, and sink housing prices even further in 2010…no one knows for sure!
Here is another chart that will help put all this in perspective. During 2009 the housing resale market in Valley Center was dominated by foreclosed or short sale homes. Most of these short sales or REO homes were priced under $500K when they were sold, just take a look at this chart:
If you just look at the generic sales numbers you would only see about half of the total sale here were foreclosures. But this chart shows you the truth!
For homes priced under $400,000 more than 78% were distressed sales, with most being foreclosures. That is complete dominance of that market by foreclosures and short sales.
In the under $500,000 range you have 72% of the sales with some type of distress, and 34 total short sales.
You really see the impact of short sales once you remove the upper price limit. For all sales amounts 69% were distressed, with 46 of those homes being short sales.
What I see in this data is a HUGE need for more short sales. No more than 20% of all foreclosures should happen.
Homeowners can avoid foreclosure with a short sale, and in most cases put themselves in a MUCH BETTER position to recover from the financial hardship that brought on the sale.
If you want to avoid being another unnecessary statistic please give me a call. I’m here to serve, and can give you all the information you need to make the BEST decision for your situation.
Phone Calls are Free…Information is Priceless
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