Distressed Inventory Report 2-16-11
Interesting numnbers this week. On the surface it looks like we were treading water with an overall increase of distressed inventory rising only one home from 316 to 317 but if you check the spreadsheet there was some action going. the 98005 zipcode saw a drop of bank owned homes of five homes with the week before having 22 bank owned homes of record in that zipcode now this week it has dropped five homes to 17 homes. If you check the ALTOS Stats you can see that pricintg appears to be stabilizing in the 98005 zipcode. However in the 98004 zipcode there were seven new notices of trustee sale posted (NTS). There is a lot of turning over of inventory going on. What you can’t see on the spreadsheet is there is a constant and much more rapid turn over of inventory than I have seen in the last couple of years where I would see the same houses each week. If there wasn’t this turn over then I think you would see this inventory continuing to climb and spiking like the oil prioces are now.
The listed bank owned inventory continues to decline and that is where I also see somewhat less turn over. However overall both of the bank owned and short sale inventory continues to degrade. In the East Bellevue zip codes otehr than a couple of homes most of it is very low end needing a lot of repair. As we have discussed before this inventory is very hard to sell. No one wants a 1970 split in Lake Hills that needs to be gutted and redone. These homes while they have come down in price need to come down much more to give someone an incentive to buy these and fix them up. This is the type of inventory that is dragging the market down now.
The spreadsheet is here: Bellevue Foreclosure Report 2-26-11