Statistics showing bank-owned and Short Sales sell more than normal listings
July 18, 2011
I’d like to share some interesting statistics with you all. I’ve selected to run these stats for the city of Clearwater, but just about any city in the Tampa Bay area will give you the same results.
Let’s start with the total number of homes in Active status. This gives us 685 single-family houses listed for sale in Clearwater, FL.
Out of these 685 homes 195 (28%) are Short Sales, 30 (4.3%) are bank-owned, AKA “REO’s”, (typically managed by an REO company), and the remaining 460 (67%) are normal listings. Hypothetically, if Short Sales, REO’s and normal listings sell at an even rate we would expect to see about 28% of sales as Short Sales, 4.3% as REO’s and the remaining 67% of sales would be normal listings. But this just isn’t the case.
Here are actual sales stats from the month of June 2011:
In June a total of 124 single-family homes sold in Clearwater, Florida.
Of these 124 homes 32 (26%) were Short Sales, 30 (24%) were REO’s and the balance of 62 (50%) were normal sales.
As is obvious Short Sales and bank-owned properties sell much more often than normal listings. Typically, normal or traditional sales are priced too high. With Short Sales and REO’s the sellers don’t have an emotional investment in the property. They need a sale and are more likely to accept market price or below market price, while normal or traditional sales are homes owned by real people usually clinging on to the dream that their home is worth what it was several years ago…and it is not.