Monday, October 20, 2008

How many REO's & Short Sales are there in Long Beach?

How is the real estate market in Long Beach? Properties are still being bought and sold for sure but what does the future hold? We are going to try and answer that today or at the very least shed some light on the topic as well.

I will be the first to say that I cannot predict the future but by looking at the data we can most certainly see where the market may be headed at least by property type and what kind of inventory may be headed our way shortly.

So what does the market look like today? The graph on the left shows what is available as of today in Long Beach.

We have 1,530 total properties available for sale on the MLS. This does not include all of the new construction available in Long Beach as not all builders put every piece of their inventory for sale.

235 REO's are available. This number is up slightly from the 223 that we wrote about just a few days ago.

419 properties are listed as short sale properties. These are properties that have been identified by the owners or the agents as owing more than what the current property is worth to the bank. Some owners may make up the difference themselves but the most likely scenario is they will need approval from the bank prior to completing a sale. They are looking for the bank to take the loss.

So what does all of this mean? That is the real question we are trying to answer and the reason we bring up short sales is that when they fail they end up coming back onto the market as REO properties.

  • Currently REO properties make up 15.35% of the market
  • Short sale properties make up 27.3% of the market

Last year we saw very high approval rates by banks on short sales. Approvals were in the 80% range and up. This year we have seen that number fall dramatically. Many banks have chosen to take properties into foreclosure rather than work with clients on short sales.

If the short sales don't get approved we could see an REO market that is 42.7% of the Long Beach market. This would mean banks would represent nearly the majority of properties in the area.

The number 1 question we get after providing this information is "Does that mean I should wait to buy or sale?". The answer to that question is "It depends". Every situation is unique and rates have been moving up which means even if prices fall you would be paying more on a monthly basis for the same home.

Also keep in mind that many bank owned properties receive multiple offers and finish 10's of thousands above their actual starting price.

Keep tabs on the market and your possible next home by looking at our FREE MLS.

Related Posts

  • What is the REO Market Like in Long Beach?
  • Long Beach Statistics for September
  • Find your Long Beach Condo for sale, 3 Easy Steps


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loader said...

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Trooper said...

Thanks for posting this information....very sobering indeed.

We've got a long way to fall.

Joseph Bridges said...

happy to help and yes the information is sobering for sure.

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