The Impact of Distressed Properties on the Market- Warning boring and scary real estate statistics ahead, hide your children!
New Castle County Delaware had 3675 closed properties Year to Date in October 2011.
Of those 3676 properties, 308 were short sales or approximately 8.4% and 554 or 15.1% were REO’s or Bank owned properties which puts the year to date total percentage of distressed properties at 23.5%. Distressed properties are defined as properties that are in poor financial condition.
As of October 31,2011 New Castle County Delaware had 3328 active listings with 566 or 16.7% short sales and 168 or 5% REO’s for a total of distressed properties at 23.8%.
Kent County had closed sales of 889 Year to Date as of September 2011.
Of those 991 properties, 80 were short sales or approximately 8.1% and 224 or 22.6% were REO’s or Bank owned properties which puts the year to date total percentage of distressed properties at 30.7%.
As of September 30,2011 Kent County Delaware had 1474 active listings with 169 or 11.5% short sales and 86 or 5.8% REO’s for a total of active distressed properties at 17.3%.
So roughly, one in every four homes sold in New Castle County and one in every three homes sold in Kent County were distressed properties. SCARY!
In Delaware, distressed property continues to have an impact on the market. Out of the current percentage of active short sales, there will be some that eventually become bank owned. Both REO’s and Short Sales also have an effect on market value, by increasing the supply of homes on the market and consequently causing the price erosions that we are currently observing.