Agents feel like short sales are getting better but thinking about it has prompted me to do an update on my 2010 article What Happened To That Short Sale? I had asked the question looking at Potential Short Sales that had been listed in 2010. Now I’ve updated that data with some very different results.
Although the total number of short sale listings was lower, we (the REALTOR community) are doing much better at processing them.
- Percentage of Short Sales that SOLD is up 5%.
- Many more are still listed or pending. I think this reflects that both listing agents and buyers’ agents are explaining the short sale process to clients. It is not for the faint of heart!
- A LOT fewer short sales are actually off the market! The previous report showed 46% of short sales listed being off the market compared to just 19% now.
- Some of that is caused by the Hawaii Foreclosure act that essentially stopped all non-judicial foreclosures. I checked the dates and the majority of the short sales listings that are now (or have been sold as) bank-owned properties, were taken off the market in early 2011 before the law was enacted.
- There are fewer agents taking short sales without really qualifying their clients.
- The number being SOLD is not significantly up. In the last 12 months, 272 short sales were SOLD. The previous 12 months was 258.
- The banks appear to be more interested in processing short sales. So hopefully those pending sales will complete!
If you are patient and understand the time line, Short Sales are some of the Best Buys for buyers. However, if you want to live in Maui next month, you don’t want to try a short sale! If you are facing foreclosure, a short sale may be a possible option for sellers.
Questions or comments? Please share!