Distressed sales in the Louisville area
Just out of curiousity, I wondered how many sales in our MLS are distressed sales. In other words, how many are short sales, foreclosures, etc. My gut told me that as many as half the sales transferred were distressed.
Since the first of the year, there have 2913 Realtor (R) sales recorded in Jefferson County alone. Our Louisville MLS does not have a check box for short sales or bank owned. So, I used a few key words in the remarks section and found that 590 were possibly distressed. This is about 20% of all sales. Now admittedly, some agents will use the phrase "not a short sale", and this would have come up in my total. However, I did not add listings that have comments in the agent notes about a short sale not listed in the general remarks, which would add to the total. So, I think that 20-25% of sales through GLAR were distressed sales of some manner.
Now, to add to this. None of the FSBO data would be included in the above, since they do not use GLAR contracts. But, how many FSBO sellers are out there when the bank will pay the real estate commission? A huge item is the number of homes that transfer title between the Jefferson County Commissioner and the bank? There are 200 foreclosure sales every 2 weeks in Jefferson County. There will be about 75 each sale date that are withdrawn before the sale, leaving 125 to transfer. In a years time, that is over 3000 distressed property transfers!
There have been 11 Commissioner sales so far this year. This amounts to 1300+ sales and property transfers. Adding this to my earlier totals gives me roughly 1900 distressed sales over 4200 total property transfers or 45%.