Friday, April 24, 2009

Distressed Properties Are Being Snatched Up in Snohomish County!

Currently distressed homes sold in Snohomish County represent 46% of all closings. This number compared with new foreclosures happening at the courthouse shows that current home sales are easily absorbing the amount foreclosed properties coming available.

Distressed properties sales represent a big chunk of the current sales because they can be purchased at very reduced prices and some are selling quickly.

January through March shows 334 foreclosures, of which 144 were snatched up at auctions or sold on the open market leaving a net of 190 homes left to sell, of which most are currently on the market either in active or pending status. This also shows that banks are not holding back on putting foreclosed properties on the market. Also, providing further evidence that banks are now looking to modify loans rather than resort to foreclosure.

The foreclosure process can add additional costs of more than 10% of the price of the home. Coupled with heavily discounting the property at auction.

Not surprisingly, a majority of foreclosures are found in out-lining areas, hardest hit by lower income home buyers. As you move closer in to Everett, Mill Creek and Bothell communities, the rates go down. The Marysville, Stanwood and Arlington areas have been hit the hardest, with south Snohomish County in Bothell and Woodinville holding up pretty well.

610 = South Snohomish County: Bothell, Canyon Park, Woodinville
730 = Lynnwood, Edmonds, Brier, Mountlake Terrace
740 = Mukilteo, Everett, Mill Creek
750 = Sultan, Gold Bar, Index
760 = Granite Falls, Darrington
770 = Marysville, Arlington, Stanwood

April Trend
Current trends for April show dropping foreclosure rates for both King County and Snohomish County. Pending sales are up, which will show in the May statistics.

Through April 24th there are 133 foreclosures filed vs. 203 for the month of March for King County. For Snohomish County there are 76 foreclosures filed vs 106 for the month of March.

Additional evidence to this fact is that Notice of Trustee sale filings (mortgages in default) are also falling. For King County through 4/23 there are 728 filings vs. 1089 for the month of March. And Snohomish County shows 351 vs 499 for the month of March. Unless there is a huge spike in filings in the next last 4 days of the month total numbers should be down.
So far, there is no evidence to support the idea that the lifting of foreclosure moritoriums by several banks would flood the market with more foreclosures.


New graphs for April will be posted the 1st week in May.

1 comment:

Jillayne Schlicke said...

Hi Julie,

I thought for sure Notice of Trustee Sales would shoot up in April.

With delinquencies (borrowers late on their mortgage) continuing to rise, I wonder what's happening out there. Maybe the lenders are making decisions to say "yes" on some of the pending short sales.