Distressed Inventory Report 9-4-10

By George Thurtle

I did something I haven’t done for a while and that is take some time off.  As a result I am just posting Saturday’s inventory report today. There is a definite change in the trend. The Notice of Trustee Sales (NTS) are up significantly. They had fallen for a while and I was suspecting that was due to the servicers who handle these things taking vacations but now it appears they are back in full swing. The other significant factor is that the overall number of distressed properties is down. As an example MLS Area 530 is down overall in distressed inventory from 195 homes to 186 homes. A month ago this number was 208 homes so that is over a 10% decrease.  However this week alone there were 21 NTS in this market area but the signifact factor is that as new NTS come on they are being offset by reductions in the overall number. It can be inferred that there are number of short sales taking place since the number of foreclosed homes is not rising. This means these homes are either getting loan modifications or short sales are occuring.

What is interesting is the composition of the homes which are NTS. There is a lot of condiminium inventory.  However in West Bellevue (WB) I am seeing a number of upper end $1,000,000 dollar plus homes which are now going NTS. So it is the high end and the low end of the market that is seeing the distress. As has been discussed earlier I think you will see more high end homes as the affluent who have resources are starting to drain those resources and are not seeing the bounce in their businesses or occupations occur in a more normal cycle. These people are having to make decisions that never would have to make.

The apreadsheet is here: Bellevue Foreclosure Report 9-4-10

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