Friday, December 18, 2015

Statewide Numbers Also Show Sales Slowdown

PropertyRadar, which specialized in distressed* home sales during the recession has issued their statewide monthly statistics that show a similar decline in sales to what we recently reported for San Francisco.

Their numbers show a year-over-year decline of 3.1% comparing November 2015 to November 2014.

They also show November sales declining in roughly the same way for the past four years as our numbers showed for the 11 months of each year for the past three years.

Their primary explanation seems to be the new TRID disclosure rules** that went into effect in October that many real estate agents and mortgage brokers and lenders are still trying to get used to.  While that might explain a small decline this  year compared to last, it certainly doesn't explain the previous three or four year declines.

*Distressed properties are those where the owner owes more in loans and taxes than the current property value and, therefore, may require a short sale or similar transaction.

**Follow the link above if you really want to get down in the weeds with detail.  For a somewhat easier to understand explanation try this Fidelity National Title site.  Suffice to say the new rules mandate certain waiting periods that can lengthen the escrow period prior to closing.  Anecdotal reports we're hearing from our mortgage partners, do not suggest any across-the-board delays.

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