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Distressed Inventory Report 2-27-10

The big news this week is that the distressed inventory has seen a decline. The number of homes with notice of trustee sale (NTS) took a siginificant decline in all areas of Bellevue. The number of foreclosed homes held steady. It appears that more homes are being sold at auction and that more short sells are successful. South Bellevue (SB) saw the amount of homes with NTS decline from 31 to 24. All areas saw a decline in its NTS homes.

The amount of listed inventory remains steady. We will see if this trend continues but overall , in my opinion, this market is very muddled with declining inventories and soft demand There are very few bank owned new homes. This inventory is pretty well cleaned out with only three bank homes being listed now in the Bellevue area. There are few with a notice of trustee sale but not very many. Last November and December saw most of this inventory being cleaned out. Anyone who wants to know about these homes please email.

Here is the spreadsheet: Bellevue Foreclosure Report 2-27-10

Tags: Bellevue Homes, Distressed Inventory, Foreclosed, New Homes, notice of trustee sale
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Weekly Scorecard 2-22-10

A couple of observations this week. The first is that inventories remain low. Usually this time of year they start rising. The other observation is that other than West Bellevue sales volumes seem to be staying relatively high. The homes being absorbed are at the lower end of the price range but overall the numbers of solds and pendings seem relatively strong. South Bellevue had a very high pending volume of 13 homes. Of those home 5 were new homes 4 of them presales due to depeleted finished inventory and one finished new home. Also a first; a home went pending at $2,200,000 in South Bellevue that was not a waterfront home. This was a view home in the Pinncale.

The spreadsheet link is here: Weekly scorecard 2-22-10

Tags: Bellevue Homes. Solds, East Bellevue, inventory, pending, South Bellevue, West Bellevue
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Distressed Inventory Report 2-20-10

There appears to be no big spike in disressed inventory. East Bellevue (EB) saw a drop of five homes overall. This is a first. The only area with an increase was West Bellevue (WB). WB had four new Notice of Trustee Sale (NTS) but overall it appears that the NTS inventory is falling. More homes are selling before the Trustee Sale actually takes place. Antidotally I see more short sales receiving approval quicker. The sales rates seem steady and that combined with quicker short sale processing are keeping the lid on a potential increase in distrssed inventory.

Here is the spreadsheet: Bellevue Foreclosure Report 2-20-10

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Weekly Scorecard 2-15-10

Still no big increase in inventories. I would expect more homes coming to the market this time of year no matter what the market conditions. EB had a mild increase from 212 to 220 and the areas held steady. Sales and homes going pending in EB seem somwhat slow so we will have to keep an eye on that area. SB had 13 homes go pending this week. The per sq. ft. spike in the sales price for SB is caused by a $4,000,000 waterfront home closing.

Here is the spreadsheet: Weekly scorecard 2-15-10

Tags: Bellevue Homes, inventory, pending, Scorecard, sold, Weekly
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Distressed Inventory Report 2-13-10

Well this shows what happens when you try to make a prediction. I thought that the distressed inventory would be spiking by now but it hasn’t. This week the distressed inventory held steady and the listed inventory is falling. Now this will be replaced but a couple of things are happening.

The first is that it appears some of the inventory is getting sold before the lender takes title. This is happening for two reasons. The first is because some of the lenders are finally wising up and setting the minimum bids at the foreclosure auctions closer to market prices rather than the loan amount. As a result more homes are getting picked up at the foreclosure auctions and not making it into the system. This trend is being accelerated because FHA has now rid itself of its 90 day holding rule before resale. This has allowed speculators back into the market. These speculators were sorely needed since they picked up the worst houses that needed repairs and are refurbishing the inventory so young families can move in and occupy them. This will revive neighborhoods and greatly help the economy by redeploying some of the construction labor that has been on the sidelines. There was some political antithesis to allowing speculators to make money but the folks at FHA finally had to get practical or see its insurance fund go broke. The speculators that are in the market now have been prudent speculators because they have money and in many cases don’t even use loans. We need their money to improve these homes and get them back on the market in saleable condition something no lender can do. We also need this money flowing in the economy refurbishing neighborhoods rather than sitting on the side lines. The second reason we are seeing a flattening of distressed inventory is that lenders are finally getting more receptive to short sales and are starting to be more responsive. It is still is not what it should be but it is getting better. You can see this in the turn over of the NTS inventory.

So here is the bottom line. I am seeing more buyers enter the market as they feel more comfortable about their own personal situations and less DESIRABLE inventory. These are newer homes in good condition. No matter how you cut it this inventory will continue to decline if the economy remains stable. I know there are still the “Shadow Inventory” housing bears still out there. Their big battle cry now is the Option ARM resets in the next two years. These loan defaults will continue to supply inventory for the next couple of years but if the lenders keep improving their game and dealing with this problem and the economy stays stable this inventory will be worked through the next couple of years. Antidotally I am seeing the lenders more responsive in dealing with these types of loans on a short sale basis.

Here is the link to the spreadsheet: Bellevue Foreclosure Report 2-13-10

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Weekly Scorecard 2-8-10

Inventories have finally stopped dropping. They have not increased but they are not rising as they traditionally do each year. Sales continue to march on. The volume looks low but keep in mind these sales occured in December. The pendings are showing increased volume which is normal. However all the action seems to be at the low end of the pricing spectrum and there are some pretty low per sq. ft. numbers.

Also the monthly stats just got updated today so check them out.

Here is the spreadsheet: Weekly scorecard 2-8-10

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