Almost 2 years ago, I wrote an article about how short sale inventory far outweighs REO inventory on Oahu. Back then, I predicted that REO inventory would increase. It definitely has, however, not to the extent I had anticipated. Back then, short sale inventory for single family homes was nearly 10 times that of REO inventory.
This short sale listing in Ocean Pointe (MLS# 1105505) is one of 103 available today
Today, there is 2.5 times as much inventory of short sale single family homes for sale as there are REO’s. There’s been an inverse relationship with short sales and REO’s since. While the number of bank owned properties has increased, the amount of short sale inventory has decreased dramatically.
Back then, there were 207 short sale homes on the market with an additional 97 in escrow. Today, there are 103 on the market, with an additional 103 in escrow. In essence, there was 50% more short sale inventory less than 2 years ago.
What does this mean? Short sales work and are selling. If you’re a buyer and looking to buy a short sale on Oahu, the approval process is now much quicker than it was nearly two years ago. Also, for sellers, I believe this will become more and more of a viable option after Act 48 was signed in.
What has happened is more and more lenders will now be seeking judicial foreclosure where they can get a deficiency judgment against the borrower. If you are a homeowner on Oahu and owe more money on your home than it is worth, feel free to contact me for more information to see if a short sale is the right option for you.
David E. Buck, R
Hawaii Life Real Estate Services