2-Week Real Estate Snapshot
August 3-August 16, 2009:
New Listings: 95
Price Improvements: 96
Pending: 77 the past 2 weeks
37 this past week that break down to:
Under $1 Million: 27
$1-2M: 5
$2-4M: 4
$4-8M: 1
$8M+: 0
Closed: 49
Off Market: 68
Back On Market: 22
Standard Definitions:
0-3 Months of Inventory = Seller’s Market **
3-6 Months of Inventory = Balanced Market
6-9 Months of Inventory = Buyer’s Market
9+ Months of Inventory: Soft Market
**The "low end", under $1 million in Santa Barbara real estate lingo, has turned and is now considered a seller's market, with multiple offers on many of the properties after just a few days on the market. Many agents have commented that bank owned properties, aka REO's, are being priced 10-15% below market value and counting on the multiple offer frenzy to bid up the purchase price.
Others noted that banks are now coming back to buyers in escrow and demanding more money to close the transaction or they will not continue forward with the escrow. The world of short sales and REO’s is the wild wild west with not a lot of rules or regulations but definitely a lot of patience needed for the buyers and their agents! The name, "short sale", does not mean a short escrow, rather that the sellers owe more than what they will get for selling their property. Sellers have to qualify for a short sale and must speak with their lender (and their accountant) about their options and the repercussions.
