On January 5th,
2009, there were
over 438 homes for sale in EVERGREEN. Bank Owned and short sales represented
over 62% or almost two-thirds of total sales. The median price of single family
homes in EVERGREEN was slightly under $450,000. The percentage of distressed
properties sold in Evergreen still hovers around 62% at the end of March 2011
with the median price around $510,000. Will this market perform well despite
2/3 of its sales being from distressed homes?
Let’s examine the supply and demand
equation for the EVERGREEN real estate market.
Active
and pending sales for bank owned homes have been declining since peaking in
January 2009. This is a good sign for the market. Most banks prefer to dispose
of under-performing assets through short sales or by modify mortgages. Bank
owned homes may soon become an endangered species.
That
active and pending short sales have been holding at a high level since January
2009 speaks to the economic conditions in Evergreen. The area is relatively
new, as many of the home owners have bought within the last 15 years and many
home owners find themselves holding on to a money losing investment. The home
owners are more willing to walk away and sell, and some are burdened with
financial hardship and others are strategically avoiding paying for a bad
gamble of the past.
The
media and many real estate experts predict more foreclosures from banks. Regular
sellers are extremely reluctant to offer up their homes for sale for fear that
bids may come in lower than their expectations or that their asking price may
be much higher than the demand can bear. The market has many buyers looking but
the numbers of consummated deals are not high enough to advance the median
price above the $700,000 mark.
What will happen to
the EVERGREEN real estate market?
Spring
marks the beginning of a new buying season, and buyers this year are expected
to follow the established past pattern. The market will advance into the summer
months with distressed sales being the dominating factor. If the number of
short sale and bank owned homes remain at the current level, expect prices to
retreat by the late fall and winter months. The distressed inventory needs to
decline in order for the market to advance throughout this year.
Help for Buyers and Sellers
The new normal for the Evergreen real
estate market has been the dominating force of the distress sales. The
important factors for sellers and buyers to consider when selecting a real
estate agent are:
How
will this market change in the next 6 months?
What
market do you compete with?
How
do I gain an advantage compared to other buyers and sellers?
Please
call Jason Lee at (408) 348-7988 or email
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to schedule a private
consultation. Find out how we have sold over 200 homes in the last two years
and helped many distressed home owners get relief from their financial burden
through loan modifications or avoiding deficiency judgments with a short sale.
Knowledge is what will make a difference in today’s real estate market. Call
now to be an informed buyer or seller.
We are all entitle to our opinions,
but we share the same set of facts
