In Many Markets, Short Sales are 1 in 10 of All Transactions

By: Katie Curnutte, Zillow PR Manager | February 13, 2009

In my line of work, it’s not surprising that I’m a bit obsessive about checking out for-sale listings in my dream neighborhoods of Seattle. More and more, I see these words popping up: “Short sale approved by lender!” Short sales are almost everywhere these days, and for the first time, Zillow has put a number to the trend.

For our Q4 Real Estate Market Reports, we looked at original mortgage amounts and recent sales, and figured out that 10.9% of all transactions that occurred during 2008 were likely short sales (when a lender agrees to accept less for a home than is owed on the mortgage).

The frequency of short sales varies by market. The San Jose, Santa Cruz and Santa Rosa, Calif., regions had among the highest rates of short sales (all around 12%), and the Albany and Poughkeepsie, N.Y., areas had the lowest (0.1% and 0.8%).

I’m curious about the differences. I know that Albany and Poughkeepsie have fairly stable markets, but areas like Madera and El Cento, Calif., also had low rates of short sales (3.4% and 4%, respectively). These markets have been hard-hit by the downturn — in Madera, the median home value fell 30.3% and in El Centro, it fell 22.6%. But in San Jose, Santa Cruz and Santa Rosa, home values have also fallen (all by around 20%).

Here are lists of the markets with the lowest and highest rates of short sales in 2008:

Lowest Rates of Short Sales

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Highest Rates of Short Sales

More information on short sales can be found here, and in our Q4 Real Estate Market Reports page.

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Categories: Real Estate

Comments

7 Comments so far

DebtFree on February 13, 2009 3:24 pm

Katie, perhaps forward this to all Zillow employees to help them understand fully where the real estate market is, and where it’s going:

THE HOUSE OF CARDS

CNBC presents the definitive report on the defining story of our time. CNBC correspondent David Faber investigates the origins of the global economic crisis, with first person accounts from home buyers, mortgage brokers, investment bankers and investors – most of whom let greed blind them, leading to the greatest financial collapse since the Great Depression.

cnbc.com/id/28892719/

Air Dates on CNBC:

Saturday, February 14th 7p | 10p ET

Sunday, February 15th 9p ET

Monday, February 16th 8p | 12a ET

Sunday, March 1st Midnight ET

Sunday, March 15th 9p ET

This is the best, most comprehensive piece on the Financial Crisis to date. It’s the piece 60 Minutes, et al, should have broadcast in the 2003-2004 timeframe.
Bob on February 15, 2009 2:47 am

Thanks, Debt Free, but my wife Joan has already told you taht before, hasn’t she?
Kathy Howe on February 18, 2009 2:01 am

Katie, while I read your information, I continue to wonder how many other areas your information is skewed by the fact that land listings are in with residential property listings. I have tried to point this out to Zillow, and there is no way to contact you all except through blogs…maybe you will pass this note on to the powers that be. Zillow could be a viable entity, but you cannot be until you make certain the information you use is comparing apples to apples. Investigate Sedona, AZ. In my neighborhood you have downed our sales with at least one land sale. I want you to be successful, but first, you have to be accurate.
Kathy Howe on February 18, 2009 2:09 am

100 Manzanita Lane, Sedona, AZ is a lot.
Prince William Homes on March 1, 2009 7:08 pm

Those are interesting statistics, and I also hear that onely 1 in 20 short sales are working out.
Jesse Nelson on March 7, 2009 12:27 pm

i’m sure this number will rise.
Beth on January 7, 2010 11:24 am

I sure hope that this figure doesn’t rise, that would be truly awful!