Huge drop in short sales and foreclosures pave the way for continued real estate market recovery.
Statistics from the Southland Regional Association of Realtors show some significant changes in the marketplace. It seems like not so long ago that our market was flooded with short sale and bank-owed properties in our inventory. However, recent reports show that short sales in Santa Clarita have dropped 82% since March of last year, with foreclosure/bank-owned properties dropping over 50%.
These figures are significant in demonstrating what appears to be a full recovery of a once fragile real estate market here in the SCV. Many homeowners who found themselves upside down on their mortgage during the Great Recession have since either refinanced (or performed a loan modification), short sold, or performed some other form of foreclosure avoidance such as a deed-in-lieu of escrow. In other cases, homeowners who have held on to their properties are once again seeing positive equity.
Market once again picking up steam for 2014
We’re beginning to see a lot of movement in the marketplace, with homes remaining on the market an average of nearly 3 weeks less than in March of 2013. Inventory is turning, and home prices are still on the rise. Interest rates have remained steady all year so far, hovering in the mid 4% range, bringing out the buyers who are still hoping to take advantage of their purchasing power.
Are short sales a thing of the past?
We are seeing short sales and foreclosures drop to pre-recession levels, but that doesn’t mean there aren’t those who still need help. Fortunately, many federal and state programs are still in place to help struggling homeowners either keep their home, or short sell without risk of a foreclosure.
The good news is that recent changes to FHA guidelines may allow those who experienced a short sale or foreclosure the opportunity to get back into the real estate market in as little as a year. There are certain qualifying guidelines, but the rumor that you must wait seven years after a foreclosure or short sale to purchase another home is merely a myth.
Did you go through a short sale and want to get back into the real estate marketplace?
Contact me for more information on how you can once again achieve the dream of home ownership…even if you’ve been through a short sale or foreclosure.