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October 17, 2008

Just Released: Q3 2008 Foreclosures and Short Sales in the Twin Cities Housing Market

Pages_from_foreclosuresandshortsaleForeclosures and short sales (i.e., lender-mediated properties) continued to increase their market share in the third quarter of 2008.

Over 34 percent of new listings and closed sales during Q3 2008 were lender-mediated, up significantly from the same quarter in 2007 and 2006. The increase is due in part to continued growth of lender-mediated properties, as well as the typical seasonal slowdown in traditional real estate activity (excluding lender-mediated properties). The report reveals the following and more:

• Over the past year, the inventory of traditional properties has declined by 22.9 percent, while lender-mediated homes have grown by 64.6 percent.

• Of all current active properties for sale, 28.1 percent are foreclosures or short sales.

• Home prices are declining across the board, but the declines are quieter for traditional properties. Lender-mediated properties are seeing faster declines as financial institutions price them to move and condition issues decrease their value.

The report underscores the fact that this phenomenon will be with our market into the foreseeable future. The prevalence of lender-mediated homes varies greatly from area to area. A full index of MLS areas and cities is included in the report, which also includes more analysis and an explanation of the research methodology.

Click here to view the Q3 Update.

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Posted by at 08:54 AM in Foreclosures, Shortsales |

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