"Short sales to continue strong well into 2014" Marie Renee Smith.

Tuesday, July 30, 2013

Twitter: @MyShortSaleGuru 
LinkedIn: Renee Marie Smith
By Marie Renee Smith. Renee is an attorney and author of the best-seller "My Short Sale Guru's Guide". Renee services most of our clients.

I am glad to announce a successful first half of 2013. My philosophy is that the real estate industry has forever changed. Specifically the speed in which local market values fluctuate with buying or legislation and in 2013, the major market factors at play are proving me correct.

In the 1st quarter of 2013, large cash buyers or hedge funds altered the landscape of both the Florida and Las Vegas Markets. Already limited inventory levels, in conjunction with the large purchasing power of these institutional buyers, increased prices at an accelerated rate resulting in skewed BPOs (Broker Price Opinion) and short sale lender market values. This even had some opine that short sales were over in these areas. Facts proved otherwise. In the 1st quarter of 2013, Miami Dade County, Florida had the highest initiation of short sales in Equator, the lender online processing service, of any county in the United States. My statics below show 33% of the 2013 market remains short sales. So even with 7-12% property price increases, there is a large segment of mortgages that have not returned to positive territory.

In the 2nd quarter of 2013 major shifts occurred in the short sale market. First, we witnessed all buyers, including the institutional ones, pull back buying as a result of the short sale lenders over inflated counter offers and market values not reflecting the true local values. Second, with the jump in property values, traditional sales increased with sellers willing again to realize normalized returns. Third, the low number of Las Vegas primary homeowners willing to short sale in 2013 (see below) had many believing it was related to state legislatures limiting lenders' efforts to foreclose resulting in homeowners' preference to live for free instead of resolve the delinquent mortgages through sale. As a result, in the 2nd quarter 2013 both Nevada and Florida legislatures have eased current laws relating to foreclosure to address the foreclosure backlog and low inventory levels. Lastly in June 2013, HAFA (Home Affordable Foreclosure Alternatives) program was been extended to until 2015 giving primary homeowners more time to take advantage of the mortgage assistance in conjunction with the eased foreclosure regulations.

We look forwarded to continued strong sales with prices normalizing due to the above factors reducing the speed of price increases, motivating primary homeowners to list properties for sale and continued short selling well into 2014 with the HAFA benefits.

-> Smith & Associates' 2nd Quarter 2013 Statistics<-

Over $15,000,000.00 in closed sales year through June
Smith & Associates: 80% Short Sales vs. Current National Average: 22% Short Sales
Nevada and Florida: 33% Short Sales per United Press Inter’l 3.17.13
77% Primary Residence Short Sales vs. Investment Properties
• 52% Primary residence in Florida
• 19% Primary residence in Las Vegas
26% of Smith & Associates Short Sales in process are located in Las Vegas
35% of the Short Sales with the Big 3 Lenders (Bank of America, Chase, and Wells Fargo)
• 12.5% with Big 3 Lenders in Las Vegas
• 34% with Big 3 Lenders in Florida
44% of all Short Sales being processed in Equator
To Purchase Renee's Realtor Book:

You Might Also Like