Distressed Inventroy Report 10-17-09
The news this week is the overall uptick in distressed inventory that appeared last week has accelerated. This week There were 80 homes that could be categorized as distressed inventory which is either a foreclosed home and is bank owned or a home with a Notice of Trustee Sale (NTS). Two weeks ago this number bottomed at 73. The peak number was on August 15th at 91. As everyone knows in the news homes sales volume have been up but prices have been down. If you take a look at the Altos graphs on the home page you have seen prices moving up and in the monthly numbers we saw the per sq.ft. prices move up in East Bellevue to $250 per sq. ft. However what I have noticed on the street level is that it appears sales volumes are starting to drop. It appears the buyer does not want to play at higher prices.
In the weeks previous the robust market conditions were taking the NTS inventory off of the shelf quicker than it was coming to the market while the number of new foreclosures was actually increasing. However it appears the slowing sales is not taking the inventory off of the shelf as quickly. Even the listed distressed MLS inventory has taken a jump. Looks like the inventory will build until the prices come back down to the $220 per sq. ft. level and sales volumes will probably increase then to absorb the inventory. This market appears extremely price sensitive with the buyer only willing to play at a certain level.
Click on the link for the spreadsheet.
East Bellevue Foreclosure Report 10-17-09
Interesting…I’ll be watching to see if the trend continues. We haven’t seen a big uptick in overall distressed homes, but it could be on the way.
My personal feelingsd is for the East Bellevue market I don’t think you will see a spike but a gradual increase as seasonal volumes fall and the recent price spike to $250 per sq. ft. drifts back down to $220 per sq. ft. and then probably start seeing declines in Q1 2010.