More than 14 months ago we looked at the inventory and sales levels for short sale and bank owned properties. Today, let's see how that market is looking and as a seller, could we be expecting more bank-owned inventory coming on the market?
Here are a couple of data points worth noting:
- Fourteen months ago, we had about 264 short sales and bank owned properties on the market, as of last week, it was only 124 units, a pretty significant drop in terms of units but as a percentage against the total inventory level, it's only a drop of 3.8%.
- Listings sold over the last six months on the other hand has actually increased from 173 to 315 units. As a percentage against all sales, it's an increase of 6%.
- Bank owned inventory has dropped by more than 60% from April 2011 and short sale condo sales have gone up by almost twice as much.
- Short sales and bank owned condos still made up about 30% of all sales.
It seems that major banks with a back log of short sales and bank owned properties are releasing these properties on the market in a trickle which is avoiding a flooding of the market. That said, expect these distressed sales to continue to be a material part of the supply and hold any price improvements at bay for some time.
By Wendy Leung with Seattle Condo Review: A guide to Seattle condos exclusively for buyers and sellers.