Mid-Year Distressed Properties Report Examines Strength and Trends of Mid-Atlantic Housing Market Th
Rockville, MD (July 18, 2012) – With the potential for a new ripple of foreclosures and short sales in markets across the country, Metropolitan Regional Information Systems (MRIS), the industry leading Mid-Atlantic Multiple Listing Service (MLS) that facilitates nearly $93 million a day in real estate transactions, announced the availability of the first in a new series of data reports focused on “distressed” home sales, including short sale, foreclosure and real-estate owned (REO) properties within the Mid-Atlantic region. The goal of the report is to educate both real estate professionals and consumers on meaningful trends in the MRIS market and, also, to establish a baseline for future measurements.
• Over half (23 of 45) the jurisdictions saw a higher share of short sale transactions compared to this time last year.
• 44 of 45 jurisdictions experienced a drop in the proportional share of foreclosure sales
• YTD June 2012 distressed sales are 22% below the YTD June 2011 level, likely due to the moratorium placed on foreclosures in 2011, which lowered supply.
• The fallout rate of 47.9% for short sale contracts is significantly higher than for foreclosures (16.0%) or conventional sales (13.8%).
• Once a contract is signed, short sales take more than twice as long to settle as foreclosures or conventional sales.
REVIEW THE REPORT: A copy of the Mid-Year Distressed Properties Report is available for download here and is embedded below. The data is compiled and distributed in conjunction with MRIS’ data and analytics subsidiary, RealEstate Business Intelligence (RBI) and the Center for Regional Analysis at George Mason University.
The Mid-Year Distressed Properties Report is a six-month look at median sale prices, new contracts versus pending contracts on the market and the region-specific shift between short sales and foreclosure sales. It also documents the accelerated progression of the Mid-Atlantic housing market recovery.
“Both macro and micro-economic factors impact housing markets around the country resulting in demonstrated shifts relating to what is called the “shadow” inventory. And in local neighborhoods throughout the Mid-Atlantic region, it becomes difficult to ascertain a separation between so-called distressed and traditional sales inside the shadow,” said John L. Heithaus, CMO at MRIS. “While the evidence supports a recovery in conventional sales, the increase in short sales, particularly as you begin to examine the success rates for settling these contracts, is clearly having an impact on local markets.”
According to the data, 44 out of 45 jurisdictions examined experienced a drop in the share of sales of distressed properties from YTD June 2011 to YTD June 2012. Within the distressed market, short sales are becoming more prevalent than foreclosures. Over half (23 of 45) the jurisdictions saw a higher share of short sale transactions compared to this time last year. Conversely, 44 of 45 jurisdictions experienced a drop in the share of foreclosure sales.
“By focusing on the state of the pending short sale market our goal was to also examine the fall-out rates on both short sales and foreclosure sales in the Mid-Atlantic region,” said Jonathan Hill, president of RBI. “The finding that only one if five eligible short sale contracts move out of pending status, coupled with the fact that nearly half of those that do are failing, is just one key indicator of the industry impact from the emergence of distressed inventory. We believe this could be a harbinger of developing trends in the market and want to make certain real estate professionals and their customers are well informed.”
Metropolitan Regional Information Systems, Inc. (MRIS) is Real Estate in Real Time™. We’re a leading provider of real estate information technology and services, and are frequently ranked among the most productive Multiple Listing Services (MLS) in the nation, facilitating over $33 billion in system wide sales in 2011. In its core market, MRIS supports over 44,000 real estate professionals spanning the Mid-Atlantic region, including Maryland, Virginia, Washington, D.C. and parts of Pennsylvania, Delaware and West Virginia. MRIS provides a portfolio of technology solutions and proprietary databases for real estate professionals, as well as broker and agent software products and an industry-leading consumer portal, HomesDatabase.com. In addition, the CURE Solutions Group, a subsidiary of MRIS, provides proprietary back-end technology to other MLS systems which serves nearly 150,000 customers each day. Visit MRIS at MRIS.com and our web based TV station, mrisTV.com. “Like” us on Facebook/MRISonFB, follow us on Twitter, @MRIS_REal_News and be sure to visit MRISblog.com for real-time news and company updates.
RealEstate Business Intelligence, LLC (RBI) is a primary source of real estate data, analytics and business intelligence for real estate professionals with business interests in the Mid-Atlantic region. The full monthly data report for all jurisdictions in the MRIS region, along with interactive charts and graphics, can be found at www.rbintel.com/statistics. RBI is the only company in the Mid-Atlantic region that provides timely, online access to statistical information directly from the MRIS Multiple Listing Service (MLS). Visit rbintel.com or www.facebook.com/rbintel to learn more.
ABOUT THE CENTER FOR REGIONAL ANALYSIS AT GEORGE MASON UNIVERSITY
The Center for Regional Analysis conducts research and analytical studies on economic, fiscal, demographic, housing, and social and policy issues related to the current and future growth of the Virginia, Maryland, and DC areas. Through its range of research and programs — major economic impact studies, economic forecasts, fiscal analyses, conferences and seminars, publications, information services, and data products — the Center’s activities strengthen decision-making by businesses, governments, and institutions throughout the Greater Washington region.
Visit http://cra.gmu.edu to learn more.