REAL ESTATE NEWS
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Real estate market affected by short sales
Market “at the mercy of lenders,” says recently released report.
By Larry UrishPublished: November 16, 2009
The Orange County real estate market – as well as the market throughout all of California – has become more challenging as a result of the marked increase in the number of “short sales,” according to a report released last Thursday by Altera Real Estate.
Subject to lender approval, short sales occur when the asking price of a home is less than the home’s outstanding loan amount. As a result, lower prices attract numerous buyers who can expect multiple offers, only to wait for an unusually long period of time for the seller to get lender approval. Buyers often walk away and look for something else.
Of the 6,838 total pending sales in Orange County, 58 percent are short sales, only 8 percent are foreclosures and 33 percent involve homeowners with equity, says the Altera report.
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Subject to lender approval, short sales occur when the asking price of a home is less than the home’s outstanding loan amount. As a result, lower prices attract numerous buyers who can expect multiple offers, only to wait for an unusually long period of time for the seller to get lender approval. Buyers often walk away and look for something else. Of the 6,838 total pending sales in Orange County, 58 percent are short sales, only 8 percent are foreclosures and 33 percent involve homeowners with equity, says the Altera report. NEXT PAGE >>> Related stories: Are you a savvy homebuyer? The state of real estate Irvine's Essex Realty debuts troubled-assets program Anaheim City Council OKs affordable housing plan O.C.'s housing market versus the nation: How do we measure up? |
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