I know everyone is familiar with the term REO and Short Sale these days and you frequently hear how this market activity can impact your home’s value.
But I’m sure you have asked yourself, do they really hurt me or my neighborhood ? The answer is YES. It is not uncommon these days for REO & Short sales to be in direct competition to those properties that have not been foreclosed or involve distress on the part of the seller.
The graph below will paint a much clearer picture for you on how these properties can impact the marketplace. REO and Short Sale activity started to impact our marketplace in early 2008. The chart reflects detached single family activity on a macro level from early 2008 through the end of December 2010.
As you will notice from the trend line analysis below, REO and short sales are significantly below the non distressed properties for this time period; ranging from a low of -5% to a high of -32%; averaging -27% for the overall time period.
Click
I hope this gives you a clearer picture of how these properties can impact your neighborhood.
{ 2 comments… read them below or add one }
Great blog post. You can really see the impact of REO & Short Sales from the chart. It is interesting how the non distressed property sales fluctuate compared to the REO properties.
Bryan, no question about the impact after viewing the chart. Your right, that bump up on the non distressed is interesting. Thanks so much.