July 9th, 2012, by Jon Lansner, OC Register
Why is it hard to find a distressed propert to buy? Because while they’re 17% of Orange County homes listed for sale, they equal 40% of the residences recently put into escrow. That’s why Steve Thomas of ReportsOnHousing.com figures that distressed homes currently sell 3.3 times faster than non-distressed homes.
Thomas publishes every two weeks a report on the supply of local homes for sale and the share of that inventory that’s distressed properties — foreclosures and short sales. His latest report — as of July 5 — says …
Thus far in 2012, the distressed inventory has shed 2,244 homes, and now totals 927 total foreclosures and short sales. In the past two weeks, the foreclosure inventory decreased by 14 homes, totaling 183, and has an expected market time of 22 days. The short sale inventory decreased by 51 homes in the past two weeks and now totals 744. The expected market time is 20 days and for the first time during the downturn, short sales have a lower expected market time in comparison to the foreclosure inventory. Yes, short sales may take a very long time and should be coined “long sales.” They are a bit more convoluted with the coordination of the lender(s) approval, the removal of HOA and/or tax liens, and bringing property taxes current. But, with so few homes on the market, buyers are willing to wait.
Some of the details …
- 927 distressed Orange County properties were listed for sale — 17% of the 5,478 listed overall.
- 1,392 new escrows were opened to buy distressed Orange County properties in the past 30 days. That is 40% of the 3,482 new pending sales countywide.
- Thomas calculated “market time” — cross of supply and new escrows showing how long, theoretically, it would take to sell inventory. Using that “market time” math, there’s 0.67 months worth of distressed properties on the market vs. 2.18 months worth of non-distressed homes.
- 27% of the distressed listings were foreclosures being sold by banks; 73% were short sales.
- 42% of the distressed listings were attached homes; 58% were detached homes.
- 34% of distressed Orange County listings were in ocean-close communities.
- Pricey? 62 of the listed distressed homes were price above $1 million — 7% of all distressed listings.
- Cheap? 618 of the listed distressed homes were priced $500,000 or less — 67% of all distressed listings.
- Chart summarizes trends in Thomas’ report, distressed counts and share of all listings (plus, pending sales and market time — demand divided by inventory.)
|All O.C.||Distressed||All||Pct. Distress|
|By type of distress||Pendings||Listed||Time (months)|
|O.C. short sales||1,138||744||0.65|
|By home type||Distressed||All||Pct. Distress|
|By price slice||Distressed||All||Pct. Distress|
|By city/High share||Distressed||All||Pct. Distress|
|Rancho Santa Marg.||22||47||46.8%|
|By city/Low share||Distressed||All||Pct. Distress|
|Corona Del Mar||2||100||2.0%|