Shocking News About Short Sales - DO YOU HAVE EQUITY?

I have always prided myself in being one of the best when it comes to knowing my market, the competition, and being able to predict the what the market (sales) will do over the next 6 to 12 months at any time. Times have changed!

2008-
The year we needed to get rid of the "spec" home inventory in order to have home prices stabilize.

2009 -
The year we need to get rid of foreclosures and short sales in order to have home prices stabilize! The short sale market is killing new construction & existing home prices. The cause of it is the terrible loans that were issued between the summer of 2005 and the summer of 2007. Those ARMs are coming due, forcing people to refinance or sell when they can do neither due to the new laws in place. Additionally, layoffs are not helping.

32% !
I just finished evaluating the number of homes presently on the market verses the number of those homes on the market that are either bank owned, short sales, or pre-foreclosures. I found that the average percentage of homes presently on the market that are short sales 0r bank owned is 32%. Basically, 1 in 3 homes that a buyer has to choose from is a distressed property.

$70 TO $80 per Sq. Ft. = Sales Price!
That's the average sales price of the short sales. If a home is 4,000 sq. ft., one can expect the sales price to be between $280,000 and $320,000. Normally, anything under $100 per sq. ft. is a good price!