Greg and Michelle Steffens 909.336.7971 direct | 909.534.8183 cell | info@gregsteffens.com
2008 Bank-Owned Sales Recap (Running Springs)
Looking at what is to come for the real estate market in Running Springs for 2009, I thought it important to look at the sales statistics for bank-owned properties in 2008 (since I don't expect the market to change drastically over the next 12 months or so).
What I found was actually quite interesting: Of the total number of single-family homes sold in Running Springs (not including Arrowbear and Green Valley Lake) in the year 2008, exactly half of them were foreclosure properties - that's 49 out of 98 units. Interestingly, this was almost identical to the percentage of bank-owned homes that sold in Crestline for the year (Arrowhead Woods, however, only had 20% of their total sales that were foreclosures).
Looking at prices of the bank-owned homes that sold in 2008, only 3 (6.1%) of the homes sold for more than $300,000, with only 8 properties selling between $200,000 and $300,000 (16.3%). That means that just about 77.6% of the bank-owned homes sold in 2008 sold for less than $200,000 (that's 38 of the 49 REO properties sold).
SALE PRICE
BANK OWNED UNITS SOLD
NON- BANK OWNED UNITS SOLD
under $100,000
7 (70.0%)
3 (30.0%)
$100,000 to $150,000
18 (64.3%)
10 (35.7%)
$150,000 to $200,000
13 (65.0%)
7 (35.0%)
$200,000 to $250,000
6 (42.9%)
8 (57.1%)
$250,000 to $300,000
2 (18.2%)
9 (81.8%)
$300,000 to $350,000
1 (14.3%)
6 (85.7%)
$350,000 to $400,000
1 (25.0%)
3 (75.0%)
$400,000 to $450,000
0 (0.0%)
1 (100.0%)
$450,000 to $500,000
0 (0.0%)
2 (100.0%)
$500,000 to $550,000
1 (0.0%)
0 (0.0%)
Total units sold
49 (50.0%)
49 (50.0%)
Of the 49 bank-owned homes that sold, 12.2% (6/49) of them sold in 10 days or less. A substantial number of the homes (38.8%), or 19 units sold in 30 days or less. Just about half of the repo properties were sold within 60 days (25/49).
DAYS ON MARKET
1-10
6
12.2%
1-30
19
38.8%
31-60
6
12.2%
61-90
7
14.3%
91-120
4
8.2%
121-150
3
6.1%
151-180
1
2.0%
181-210
2
4.1%
211-240
3
6.1%
241-270
0
0.0%
271-300
0
0.0%
301-330
3
6.1%
Of the 13 homes that sold for 100% of their list prices or better, all but three sold within 30 days of hitting the market. Of the three that took over 30 days, two of them had to do a price reduction before an acceptable offer was received (the third sold without a price reduction in 57 days).
DAYS ON MARKET
LIST TO SALE %
1-10
102.2%
11-30
102.7%
So, to learn from the past so we can apply it to the future, what do these numbers tell us to expect in the 2009 market (for the bank-owned segment)?
About 50% of the total sales in Running Springs are likely to be bank-owned homes. Roughly 80% of those listings will sell for less than $200,000. Once listed, 50% of those homes will be gone within 30 days.
Let's go through that with some hypothetical numbers:
A new bank-owned listing comes onto the market. It's "the One" and you want to write an offer on it. Chances are 5 out of 10 that this home will be gone within 30 days.
Now this is where "the mind games" start: If you decide to make an offer within the first 30 days of the listing, you pretty much have to be resigned to pay at least full price or better. If you want to risk it, the longer you go, the chances of you getting it for less increase significantly over time. The longer you wait, however, chances for other offers to come in increase significantly. Ah, the drama! What to do, what to do?
What would I do? After representing several clients in the successful purchase of bank-owned homes, I've learned a trick or two. Give me a call and I'll tell you what they are! I can be reached most days at 909.336.7971...
*Figures taken from the Rim O' the World Multiple Listing Service and are deemed reliable, but not guaranteed.
