Everyone knows values have been increasing, so it’s really not a surprise to see that distressed sales have experienced a huge decline at the same time. As I shared on Monday, April and May 2013 were the first two months in over four years where foreclosure sales represented less than 10% of all sales in Sacramento County.
There are many layers that make up value in a market, such as interest rates, employment trends, supply and demand, the media and public perception, legislation, the amount of cash, affordability, and more. The number of foreclosures is definitely an added layer because it tends to impact prices. Generally speaking, when there are too many foreclosures in a market, prices will decline, and when there are very few, the market has more room to flourish.
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Questions: Where did the foreclosures go? Why do you think short sales are seeing a decline?