After the Great Recession (a.k.a. the real market crash in 2008), short sales ruled the market. People were upside-down on their mortgages and couldn’t sell then pay off their loans. With banks holding off on releasing REOs and thousands of short sales later, it seems like standard sales (sold by people who have positive equity in their property) are becoming more common.
We noticed that practically every new listing being released on the market today is a standard sale. So we wanted to research exactly what percentage of properties on the market are standard sales, short sales or REO’s. What we found was even more surprising than expected. As of April 26, 2013 at approximately 11:00am, there were 889 active residential listings in the San Fernando Valley. Of that sum, 768 were standard sales (that’s 86.38%!); only 55 were short sales! (6.19%); 38 were REOs (4.27%); 10 probate listings (1.12%); and 18 others (2.02%).
In order to get an idea of how dramatic this change really is, we browsed the history of closed properties between April 1 and May 1, 2012. These were our results:
- Total – 815 closed sales
- Standard – 439 (53.87%)
- Short sale – 192 (23.56%)
- REO – 160 (19.62%)
- Probate – 8 (0.98%)
- Other – 16 (1.96%)
Within one year, short sales dropped from 24% of the market to a miniscule 6%, and REOs from 20% to 4%!
With property values in California climbing faster than ever, many properties that were once upside-down now have equity. The ratio of standard sales in the San Fernando Valley market has increased dramatically!