IN-DEPTH ANALYSIS

July 2010

Lender Owned Properties (REO)

Of the single family detached resale home sales reported through ARMLS for the month of June 2010, 35.3% of the listings were noted as "Lender Owned," a 1.2% decrease from last month.

The graph below shows the percentage of REO sales over the past two years. In September 2007, that number was less than 10% of total sales, and you can see the steady climb of REO sales from that point. January saw the biggest jump in the REO sales percentage as it rose from 56% in December to 68% in January. The June percentage fell even further from the January through April timeframe.  The proportion of REO sales varies substantially by city, and we'll take a closer look at that in a later article.

*A factor in the increase in the percentage of sales being reported as Lender Owned is a change in the listing procedure which requires the listing agent to check the special listing conditions block (no, lender owned, short sale, etc). Prior to a couple months ago this was an optional field. If a listed property is not specifically categorized as a Lender Owned property, we do not classify it as a Lender Owned sale.

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