Steve Thomas of RE/MAX has his latest "market time" report out, and one of the most interesting trends to us is the increasing number of distressed properties. In O.C. as a whole, 41.5% of the properties listed for sale on the MLS are either short sales or foreclosures.
There also are now six areas of South OC with at least 50% of their houses up for sale that are distressed.
They are:
Aliso Viejo - 50.2% (of MLS-listed properties are either short sale or foreclosures)
Foothill Ranch - 59.7%
Laguna Hills - 51.3%
Lake Forest - 67.1%
Portola Hills - 56.5%
Rancho Santa Margarita - 56.7%
Two more areas - Mission Viejo and San Juan - are over the 40% mark, and Ladera Ranch is at 39.5%.
You probably also noticed that the areas we've identified with the highest percentages of distressed properties also tend to be the areas with the highest price declines and largest increases in number of sales.
Makes sense - higher amount of distressed properties equals more pressure on prices, prices come down faster and that attracts more buyers.
Monday, August 11, 2008
6 South OC areas mostly distressed
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6 comments:
Oh, I think you are exagerating about the % of distressed listings in Lake Forest - I only come up with 65.7%!
I guess it depends on the time of day that you checked since many of the REOs go into "hold" status while they sort out the multiple offers on the ones that were listed below recent comps. There are 20 of them today!
Vicki, Looks like a blood bath to me no matter how much lipstick you put on this pig. Let the raping and pillaging begin!
Boy, am I sure glad I sold my overpriced Lake Forest condo last April before all the collapse. I sure feel lucky.
I should have mentioned that Thomas' numbers were taken off the MLS Aug. 7.
It is interesting to see so many people fighting over REOs, but not surprising since the banks actually have the power to pull the trigger at prices below what most private owners can and want to go to.
I find it interesting that Ladera Ranch is not higher on this list.
Banks are withholding a lot of their excess properties. I'm sure they don't want to flood the market with short sales too quickly.
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