I got to wondering how the number of financially distressed real estate sales in our south Santa Clara County towns of Morgan Hill, Gilroy and San Martin compares with several years ago. Are they lessening? That was my guess but I had to dig back to some of my old blog posts to find out if my guess was correct. I found an old post from January, 2010: Percentage of Distressed Sales in South County that looked at the real estate sales in our area from January 2009 to January 2010.
Closed single family homes and condos January 2009 – 2010:
Morgan Hill: total sales = 444, distressed sales = 231, percentage distressed = 52%
Gilroy: total sales = 659, distressed sales = 491, percentage distressed = 75%
San Martin: total sales = 36, distressed sales = 23, percentage distressed = 64%
Now to compare this to the past 365 days, April 15, 2011 – April 15, 2012:
Morgan Hill: total sales = 501, distressed sales = 281, percentage distressed = 56%
Gilroy: total sales = 622, distressed sales = 414, percentage distressed = 67%
San Martin: total sales = 38, distressed sales = 25, percentage distressed = 66%
Well, this looks like my guess for the past year was incorrect. Things haven’t changed that much. It’s nice to see the percentage is lower in Gilroy but is actually a little higher in Morgan Hill and San Martin. But I think the real story will be told when I look at these same statistics next year. I think that the distressed market is finally starting to dry up. As a matter of fact, let’s look at what is currently on the market right now:
Morgan Hill: active listings = 116, active distressed = 32, percentage distressed = 28%
Gilroy: active listings = 80, active distressed = 24, percentage distressed = 30%
San Martin: active listings = 15, active distressed = 4, percentage distressed = 27%
If the active single family home and condo listings are any indication, the number of distressed homes on the market are finally starting to thin out. Of those properties that are still in financially distressed situations, hopefully those who wish to stay in their homes are able to modify their loans and those who want to get out from under their mortgages are able to sell short with a lot more ease than just a few years ago….