Movoto.com Survey Indicates Looming Second Price Drop

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Stale short sale listings trending toward increase in foreclosures. A Movoto.com survey of real estate agents in 90+ US metro areas shows short sales are still difficult to close.

A new survey conducted by Movoto.com of its certified real estate agents indicates that another drop in homes for sale prices could loom on the horizon for 2011.

According to the Movoto.com survey, 49.2% of agents say the majority of homes for sale in their market are short sales. However, agents also described short sales as the most difficult type of transaction to complete. The survey found that short sales typically take between 9-20 weeks to close once an offer is made on the home, and 22.6 % of agents said that in recent short sale transactions the mortgage servicer was so difficult to work with the buyer ended up walking away.

Agents indicated that 26-50% of short sales in their market are currently pending and according to Movoto.com many of these pending offers will not conclude in a sale, but will instead result in a foreclosure.

“As much as everyone would like to believe that the housing market has hit rock bottom, the reality is that if drastic changes to the short sale process are not made soon, a second price drop could be looming,” said Movoto CEO Henry Shao. “Lender Processing Services has reported that foreclosures are rising, with foreclosure starts up 33% since the end of February. And, as more foreclosed homes enter the market at lower prices, it’s likely that fewer offers will be made on existing short sales listings because short sales are so difficult to close. Eventually, those homes will become foreclosures in the coming months.”

To review local real estate market statistics visit Movoto Market Stats.

About Movoto

Founded in 2005, Redwood-City-based Movoto is led by an experienced team of real estate industry veterans and internet technology experts with a shared vision of empowering real estate consumers. Movoto provides a unique online home-buying solution that combines innovative, easy-to-use research tools with ready access to a network of experienced local real estate agents. For more information please visit http://www.movoto.com.

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Laura Baumgartner
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