They should call them Long Sale
July 29, 2009
Post Tags: REO sales , Short sales , tucson housing shortage
A Very Long Sale Process
It is the oxymoron of real estate these days. Short sales are not short. They was LOOOOOONG sales
Short sales take forever to close (at least it feels like forever for the buyers and sellers waiting on the bank. If you need a home to live in soon, they are already out of the inventory you can consider. If you don’t have 6 to 9 months to wait don’t even consider making an offer on a short sale property.
With the rapidly declining inventory of homes and the number of short sale properties on the market we are already at the door of a housing shortage for anyone needing to move in a couple of months time.
There are areas of Tucson and certain price points that are near 2 months inventory, when 6 months is considered normal. When we look at Tucson as a whole we are at 5.8 months of inventory.
When we break it down by price ranges instead of area it is a different matter. The lower price points are less than 2 months, many are going in a week. The over a million, there’s a 30 month inventory. But, how many are looking in the over a million price point?
If you are there’s a good supply of inventory and you can buy more for a million today than you could two years ago.
The same is true in the lower price points for what you can buy, if you can find it.
I keep saying housing shortage because it is getting more difficult to find homes for buyers. While short sales and REO properties make up 12 percent of the closed transactions and are about 16 percent of the available inventory these weren’t a part of the inventory two years ago. Which means as our inventory declines and this percentage stays consistent or rises slightly the number of available homes to purchase and move into in a 2 month period is quite small.
July 29th, 2009 at 8:28 am
Dave, did you have Krispy Kreme this morning? Either your fingers were sticky or you had a very, very, very wishful thinking!
8879 Closed Transactions LOL
It’s probably one 8 too many.
July 29th, 2009 at 8:52 am
Interesting, I never would have thought that you could say there was a housing shortage right now, but I guess with some % of sellers unwilling to move their price then it could very well be true. Thanks for the insightful post