The real estate recovery has been slow in the making, and for several years now I've been saying that we need to see not only an increase in home sales but also a decrease in the number of short sales and REO (aka bank owned or foreclosure) sales. I'm happy to say we've seen a significant reduction in them over the last two years in both Albuquerque and Rio Rancho.
Short Sales Making Up Smaller Percentage of Home Sales in ABQ
Not only is the total number of short sales on the decline in Albuquerque, but more importantly the percentage of home sales that were short sales is rapidly declining. Look at the chart below and note that the decline is happening quicker than build up. This chart is for home sales in the city of Albuquerque only.
Short Sales Also Declining in Rio Rancho
As those of you who read my blog with regularity know, I like to separate out the Rio Rancho numbers from the Albuquerque stats. That's because I've noticed over the last ten years that the two markets behave differently.
Reasons That Short Sales are Almost Gone
The peak of the market is further and further behind us as time goes on. Home owners are regaining equity in their properties as house values slowly increase and mortgage loan balances decrease. Enough time has elapsed so that home owners who were underwater and couldn't dig their way out have already sold their homes short or have lost them to foreclosure. In fact, I'm meeting home buyers in today's market that have enough time behind them and their short sale or foreclosure that they're buying again. So both houses and consumers have been "recycled" if you will. And that's a good thing for the recovery of the Albuquerque/Rio Rancho real estate markets.
And so it's time to say Bye Bye Short Sales and Good Riddance!
by Albuquerque Real Estate Agent Rich Cederberg eXp Realty (505) 803-5012.