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WASHINGTON PROPERTY SOLUTIONS
SHORT SALE STATISTICS REPORT
3rd QTR 2013
Short Sales Decline in 3rd Quarter as Underwater Homeowners Hold Out Hope of Recovering Lost Equity
Many Homes Still Underwater
Closed short sales in King, Pierce, Snohomish and Kitsap counties fell in the third quarter of 2013, according to the Washington Property Solutions 2013 3rd Quarter Short Sale Statistics Report.
The decline in short sales can be attributed to several factors, according to Richard Eastern, CEO of Washington Property Solutions.
The bad loans that launched the recent financial crisis led to a sharp increase in the number of homeowners who found themselves unable to pay their mortgages. The bulk of those homeowners affected by the subprime mortgage crisis have already worked through a resolution, which included short sale or foreclosure. As a result, Eastern sees the number of short sales starting to return to pre-crisis levels.
“The bad loans that set homeowners up for failure are largely a thing of the past,” said Eastern. “But hardships that force a short sale will always be there, whether it’s divorce, serious illness, loss of work or job relocation.”
Eastern also attributes part of the slowdown in short sales to unrealistic optimism fueled by the increase in home values since the beginning of the year. While the percentage of homeowners that are underwater has decreased, there are still a significant number with negative equity: 39 percent of homeowners in Pierce County, 32 percent in Snohomish County, 30 percent in Kitsap County and 22 percent in King County.
“The rise in home prices earlier this year has given homeowners a false sense of hope that they will be able to recover equity in time to avoid a short sale,” said Eastern. “Home prices dipped the past few months, but even if they rose again at previous levels, it would take most homeowners years to regain the equity lost in past years.”
Bank-owned property also represented a smaller percentage of overall home sales during the same period. One factor leading to the decline was a sharp drop in foreclosure proceedings. According to the latest RealtyTrac data, the number of homes entering the foreclosure process slid to a seven year low in the third quarter of this year.
For information about distressed property statistics, contact Richard Eastern at (206) 612-5541 or email@example.com.
About Washington Property Solutions
Washington Property Solutions is a real estate firm specializing in short sales based in Bellevue, Washington. Founded in 2003, the company has helped brokers and homeowners successfully negotiate over 1000 short sales with a 90% success rate in closing. Washington Property Solutions also consults with homeowners on qualification for the Home Affordable Foreclosure Alternatives (HAFA) process and the Washington State Mortgage Foreclosure Fairness Act (FFA). Washington Property Solutions negotiators are licensed Windermere Real Estate brokers.
Washington Property Solutions
Windermere Real Estate /East Inc.
11100 Main Street, Suite 200, Bellevue, WA 98004