▪ Total Sales Volume increased 7.87% from October to November and increased 11.22% over November 2010.
Homes are selling, and at a higher pace than we have seen in years!
▪ Average Sales Price increased from $151,812 in October to $158,434 in November, a 4.36% increase.
Average price has steadily shown gains for a few months now, with a 3rd month we’ll call it a trend.
▪ Average List Price increased .85% from October to November.
This is indicative of the time of year, most banks hold inventory off until January, as to avoid holiday evictions so we expect this.
▪ Total Unit Sales rose 3.36% from October to November, and is up 26.88% over November 2010.
This is great news, because trends over time show November to typically be a slower month than October. This means our market is gaining some momentum!
▪ The Median Sales Price is up 1.67% compared to last month.
Median and average have improved 2 months in a row, we are looking for that 3rd month to call it an upward trend.
▪ New Listings decreased from 1,280 in October to 1,099 in November.
Falling inventory is the key to price recovery. This time of year a lot of folks decide not to list due to holidays, and we can expect to see these numbers rise slightly in January.
▪ The Sales Price/List Price ratio % is 99.53% for November.
This is a sign of the market, based on our inventory numbers we are in a true seller’s market now. This statistic definitely reinforces that.
I have two mortgages on my house. Does that mean I am limited to foreclosure or do I qualify to short sale my home?
Question: I have two mortgages on my house. Does that mean I am limited to foreclosure or do I qualify to short sale my home?
Answer: You can always pursue a short sale although becomes a bit more cumbersome at this point because of the two mortgages.
The significant point here is to understand a short sale is simply a negotiated settlement. It is an attempt to workout an amicable and mutually beneficial solution with your lender, because you are upside down in your property and need sell it.
Because there are two loans held by you means that there will be 3 negotiations that will run simultaneously.
1. The negotiation of what the second lien holder will require to release their lien.
2. The negotiation of what the first lien holder will require to release their lien.
3. The negotiation of how much the first lien holder will agree to give to the second position lien holder, if anything at all.
The 3rd piece here is the most important because there are guidelines that we must use. Most first position lien holders are reluctant to give the second position more than 10% of their payoff balance as well as most second position lien holders will settle for 3,000 or 8% of their payoff balance whichever is greater. You must understand that this scenario is typical of most and not all lenders and is in no way guaranteed or simply assumed.
If you are in a position where you are upside down and have more than one loan against your property, make certain you work with an experienced short sale agent that can counsel you through the process! At Team Johnston we handle a lot of short sales in southern Arizona and can guide you through the process of short selling your home. Contact us today for more information and to find out how we may be able to help you through this difficult time.
TUCSON rated #4 in the 10 Best Markets for Real Estate Investors…
Whats your take on this double edger sword?