The housing market is heading back to pre-crisis norms. Short sales have declined sharply over the past twelve months. The percentage of home loans in delinquency or foreclosure is at the lowest level in five years. Loans that are 90 or more days past due are down 29 percent from last year.
Why the sharp decline?
- The bulk of underwater homeowners affected by the sub-prime mortgage crisis have already worked through a resolution, which included short sale or foreclosure.
- Tighter lending restrictions that have been instituted post-crisis have meant fewer delinquencies due to bad lending practices.
- The local economy is strong and fewer people are unemployed.
The strength of the local economy has also boosted growth in the traditional real estate market.
That’s good news for brokers who struggled through the housing bubble debacle. Prices are up, inventory has increased, and most of the Puget Sound area is solidly in a seller’s market.
As a consequence, many brokers who reluctantly took on short sales have now opted to refer short sale business and concentrate on traditional sales which are faster, simpler and more lucrative.
Short sales will always be around, there will just be far fewer of them.
While the improvement in the economy has created fewer economic hardships, consumers will still pursue short sales due to other hardships, such as divorce, illness, death of a spouse or relocation.
If you would prefer to avoid the hassles of short sales and refer the business, we pay you a 30% referral fee. We have successfully closed over 1,000 short sales. And we pride ourselves on treating your clients with the utmost respect and professionalism.
If you would like to refer your short sale, call me at (206) 612-5541.