There are many areas around the country where foreclosures are about as common as an ice storm. As things settle from the great real estate bubble of the 21st century, more and more amazing stats emerge. Today, I’d like to share a fascinating statistic, by looking at the Sacramento, California real estate market.
About one of every five existing homes on the market is a “short sale.” That means the home is worth less than the value of the mortgage, and the lender is willing to accept less than full repayment of the loan to avoid foreclosure, says Tracey Saizan, president of the Sacramento Association of Realtors. That, in turn, puts pressure on the remaining 80% of sellers, who have equity in their homes, to cut prices.
I’m not sure that there is much I can really add here; I think the numbers say it all. I’m just wondering – is this a trend that we will begin to see around the rest of the country?
What are your thoughts??