REO’s, Short Sales, or a Good Ol’ Straight Deal?
September 30th, 2008 categories: Chico Real Estate, Market Report
What the Chico, CA housing market looks like NOW:
Currently, there are 463 Active single family homes for sale in Chico. 23 of those are REO’s (Real Estate Owned-Bank owned following foreclosure), 48 are Short Sales.
What the 2nd Quarter looked like:
242 homes sold during Q2 of 2008. Of those, 38 were REO’s and 10 were short sales.
At a Glance:
There are currently more than twice the number Short Sales available on the market than there are REO’s. However, nearly 4 times as many REO’s sold than Short Sales during the 2nd quarter of this year. REO’s and Short Sales accounted for 20% of single family home sales activity during that time. Currently, REO’s and Short Sales account for 15% of all active single family homes for sale in Chico.
What does it mean and Where is the Value?
Plainly, REO’s sell a lot faster than Short Sales. So, the “Short” in Short Sale, obviously does not mean that they sell fast. And, if you have ever been involved with one of these sales, either as a Buyer, Seller, or agent, I’m sure that you would agree. They can be difficult, frustrating, and ultimately, fruitless. Whereas REO’s, although not without their own complexities, seem simple in comparison. And, they are.
But, which one results in the greatest value for the dollar? Well, let’s break down the numbers for the 2nd quarter a bit further:
Short Sales:
- 10 Sold
- Average sold price: $281,320
- Median sold price: $ 270,500
- Average square footage: 1,583
- Average square foot price: $177 per sq. ft.
- Average Days on Market (although, I suspect it is actually longer): 71
REO’s:
- 38 Sold
- Average sold price: $257,794
- Median sold price: $265,500
- Average square footage: 1,688
- Average square foot price: $152 sq. ft.
- Average Days on Market: 37
Conventional Sales (neither REO or Short Sale):
- 194 Sold
- Average sold price:$339,282
- Median sold price: $289,750
- Average square footage: 1,629*
- Average square foot price: $212 sq. ft.*
- Average Days on Market: 65
Now, that is a whole heap of information that deserves to be further analyzed. So, check back for a closer look and we’ll see what it all means…
*sample taken from middle 22 solds from the month of may for expediency and practicality. All figures are considered to be a reliable snapshot, but are not guaranteed to be accurate. Data taken from Sierra North Valley MLS.
[...] my previous blog post, REO’s, Short Sales, or a Good Ol’ Straight Deal?, I laid out some interesting 2nd Qtr. figures relating to REO’s, Short Sales, and, what I [...]