The graph above shows the proportion of monthly sales made up of bank-owned properties over the past few months. [Note: I would have pulled data farther back, except the fields denoting bank-owned and short sale had only been recently introduced and not uniformly utilized prior to March of last year.] The meteoric rise in bank-owned sales is pretty phenomenal. A year ago bank-owned properties accounted for about ten percent of monthly sales. Today, they represent two-thirds of monthly sales. Add to that another 13% of sales consisting of short sales, and you’re left with only one in five sales being a traditional, non-distressed sale. [see table below]
These numbers are more striking when compared to the make-up of our current listed inventory: 22% are bank-owned; 33% are short sales; and 41% have no special condition of the sale.
Clearly the bank-owned properties are what are moving. If I’m doing my math right a bank-owned house is more than six times likely to sell than a non-distressed house.
On a telling note, one of my clients recently asked me if we could list his home as a bank-owned property, even though his home is neither bank-owned, nor a short sale. Though I liked his creativity, unfortunately I had to inform him that doing so was not allowed in our MLS.
Percentage of Monthly Sales
Note: The data reported above covers MLS Area 100 (Reno and Sparks, Nevada). The data includes Site/Stick Built properties only. Data excludes Condo/Townhouse, Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS – February 2009.