Well, according to Aubrey Cohen of the Seattle PI Real Estate Blog, a new report from CoreLogic shows the numbers we hear about real estate prices are dramatically skewed by “distressed” home sales (foreclosures and short sales). Mr. Cohen quotes that prices declined in Seattle 5.8% from May ‘10 – May ‘11 but if you remove the “distressed” home closings from that number it changes to a much less daunting 1.75%!
The reality is that short sales and foreclosure properties sell for less money than other homes. These days many buyers are getting tired of wasting months and months on a short sale. If a seller is in a good equity position they stand out well in the marketplace, often being able to negotiate more strongly on price as well as terms. It’s an interesting dynamic in what most people would consider a “buyers market”.
So “distressed homes” are dragging public perception down for sure. But they don’t have to drag sales prices down overall unless sellers fail to recognize when they are in a strong position. Just another reason to make sure you are working with a great agent who not only knows the market, but also has proven strategies for getting top dollar.
If you are curious about your home’s value don’t hesitate to give me a call. I’m happy to prepare a market analysis to help you understand your current equity position anytime. I always appreciate the opportunity to help, and to catch up with my peeps!