Thursday, July 07, 2011

2011 Semiannual Wesley Chapel Real Estate Market Report

Nowadays there are three major categories of home sales:  Traditional, REO's/Foreclosures, & Short Sales/Pre-foreclosures.  The last two categories are considered distressed sales with Short Sales/Pre-foreclosures typically being the most difficult to get from contract to close since they require the approval of the sellers' lenders(s) which can take months or even years, and often times those lenders reject the short sale completely even when offered "full list price".  Note:  Two "short sale" homes in Wesley Chapel went under contract in 2009 and still haven't closed, and fifteen have been under contract since 2010!   Many home buyers attempt a Short Sale and become exasperated over the process which can be lengthy and uncertain.  (Typically the asking price is not even approved by the sellers' lenders when the home is put on the market.)

In the semiannual analysis of Wesley Chapel single family home sales reported in MLS we see that the actual percentage of "Short Sale" single family homes that sold was the smallest category--at 23% of the total sold.

 It is interesting to note that the actual percentage of "Short Sale" single family homes currently under contract in Wesley Chapel is the highest at 67%!  (It is probable that most of those are waiting for a response by the sellers' lender(s.)  Comparing this high percentage to the actual solds shows that a large number of these will not close and become solds.  This is consistent with analyses by type of sale in the past, reflecting that the volume of actual short sale solds is much lower than those that have gone under contract.

40% of the single family homes listed for sale in our MLS are identified as Short Sales/Pre-foreclosures, 8% are REO's/Foreclosures, and 52% (Traditional) are not distressed sales.

An analysis of the actual sales price to list price ratios for the first six months show little differences in the sales price percentages in the three categories:

Traditional:  95%
REO/Foreclosures:  97%
Short Sales/Pre-Foreclosures:  96%

*Information reported from MLS deemed reliable but not guaranteed.

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