By the end of August, available inventory in residential properties in Santa Fe had decreased to 1719 homes listed for sale, indicating a slight decline in properties for sale compared with July’s 1740.
Of these homes listed, 161 are either bank owned or short sales. This number of distressed properties is close to last month’s number and with 22 sold distressed properties in August, reveals that the foreclosures and short sales continue to be present in the market.
Sold properties numbered to 94. With 22 of the sold properties being distressed, this continues to be the arena where bargain hunters are investing. These distressed properties also add to the downward pressure on values for those who simply need to sell and who are not in financial straits.
These statistics show a drop in the number of distressed properties that have sold and thus warrant further watching. It is suggestive that the real estate market will not stabilize and begin to show an increase in value until all the distressed properties are sold, which could take us into next year.
Twenty percent price reductions from original asking prices are not unusual and the downward pressure on values continues. While interest rates hover near historic lows, buyers are still demonstrating hesitancy given overall economic news and the low interest rates do not seem to be having much of an effect.
Less expensive homes led the way in August with only four properties selling at $1M or above and most of those at significant discounts. The average days on market for the $1M plus home was 851, while the cumulative days on market for all the sold properties was down to about 9.5 months. This may be because the bank owned properties, priced at bargain levels, tend to sell more quickly.
The numbers of distressed or bank owned properties eased slightly with buyers taking advantage of terrific opportunities. The average sold price of a distressed property is in the low $200s.
National reports indicate that default notices now number 6.45 million. Foreclosures appear to be easing but the courts are overwhelmed and it’s estimated the a million foreclosures originally scheduled for 2011 will be pushed back to 2012.
National figures report now that 40% of all sales are of distressed properties, a bit above what our local Santa Fe market is experiencing.
The moratorium on foreclosures while lenders were checking alleged improprieties in processing came and went and the banks are once again pursuing foreclosures.
Of the 1719 Santa Fe available properties 259 have asking prices above $1M.
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