Published on October 16, 2009
Lender-owned foreclosure inventory available for sale in the Twin Cities is down 60 percent from last year, falling from an estimated 4,886 at the end of last September to 1,960 this year. Short sales are a different story-basically holding steady over the last 12 months.
The simple reason for this growing chasm is that foreclosures are selling roughly three times as frequently as short sales. Many consumers have reported considerable delays and uncertainties associated with making an offer on a short sale home. These complications are likely the main cause of the relatively quiet sales activity.
With heavy demand and dwindling inventories, there is only 1.5 months of lender-owned foreclosure supply remaining. Conversely, there is currently 13.9 months of short sale inventory available. A balanced market between buyers and sellers should have 5 or 6 months of supply.