The inventory of distressed properties in central Ohio continued to decline during the first half of 2017. Lender-mediated closed sales were down 38.2 percent in the second quarter of 2017. This is a record low according to the 2Q17 Lender-Mediated Properties Report published by Columbus REALTORS®.
Lender-mediated properties are defined as foreclosure, lender owned, short sale, HUD and VA listings.
“If you thought inventory was down, the inventory of distressed properties is way down,” said Mic Gordon, 2017 President of the Columbus REALTORS®. “And that’s good news. We don’t have as many homeowners in trouble as we did a few years ago.”
The share of new listings that were distressed during 2Q2017 fell from 7.7 percent last year to 4.5 percent this year.
Single family homes that were distressed accounted for 5.9 percent of the total home sales during the second quarter. Condominiums in a distressed state made up 2.7 percent of the second quarter sales.
During the second quarter, lender-mediated properties spent 41 days on the market which is a record low. Last year it took an average of 50 days to sell a distressed home.
“When there were more distressed properties on the market back in 2010, it was overwhelming to the banks,” Gordon said. “Today they’re more prepared and better equipped to process short sales and foreclosures.”
The drop in the share of lender-mediated sales from 10.2 percent in 1Q2017 to 5.4 percent last quarter has helped to enable a 4.1 percent gain in the median sales price of distressed homes to $75,500. The median sale price of a home that is not lender-mediated was $194,499 during the second quarter.
“Homes are in great demand right now, with inventory being at record lows,” Gordon said. “If you were previously under water in your mortgage, contact a REALTOR® to see if the increase in prices will allow you to sell your home now and take advantage of current market conditions.”
Columbus REALTORS® is comprised of over 7,800 real estate professionals engaged in residential sales and leasing, commercial sales and leasing, property management, appraisal, consultation, real estate syndication, land development and more.
The Columbus REALTORS® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Licking, Madison, Morrow, Pickaway and Union Counties and parts of Athens, Champagne, Clark, Clinton, Fairfield, Hocking, Knox, Logan, Marion, Muskingum, Perry and Ross Counties.
For more information about the central Ohio housing market, see Housing Reports.
To view commercial properties for sale or lease in central Ohio, visit COCIE.
To view residential properties for sale, visit Realtor.com.