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Short Sales Dominate New Escrows
The market continues to improve with 91 new escrows opened in the previous 7 days. Digging in to those statistics a little deeper reveals some interesting facts.
New contracts for condos and homes are almost equally split at 45 and 41 respectively, while there were only 4 new vacant lot sales. Of those new escrows, 43 are Short Sales subject to Lender approval, 10 are REO’s, and the balance of 38 are the more conventional type.
When we look at what actually closed in the previous 7 days, we find a much different picture. Out of 31 closed transactions, 7 were short sales and only 1 was an REO.
What conclusions can we draw. I think the most important one is that the number of Short Sales is increasing; however, the percentage that are closing is still relatively low. In other words, if you make an offer on a Short Sale, patience is the name of the game.
Nonetheless, short sales should not be ignored or discounted just because they are more challenging. The banks are finally starting to understand that it is better to do a short sale than foreclose.
Have a wonderful week.
Mahalo Nui Loa,
The Smith Team
P.S. The whales are back. Come and enjoy a beautiful vacation on Maui, and while you are at it, let us show you how far your dollar can go in today’s market.