As can be seen in the table below, this market correction is affecting the lower priced markets much more severely then the highest priced markets. For example, 64% of Santa Ana's inventory of homes for sale are either foreclosed REO's or Short Sales. While only 4.4% of the inventory or properties for sale in Laguna Beach, CA are bank owned REO's or Short Sales.
Properties Active for Sale
| City |
Listings | Short Sales | Short Sale % | REO | REO % | % Total Distressed |
| Anaheim | 1207 | 615 | 51.0% | 157 | 13.0% | 64.0% |
| Huntington Beach | 699 | 121 | 17.3% | 18 | 2.6% | 19.9% |
| Laguna Beach | 343 | 12 | 3.5% | 3 | 0.9% | 4.4% |
| Mission Viejo | 448 | 159 | 35.5% | 28 | 6.3% | 41.7% |
| Orange | 667 | 211 | 31.6% | 53 | 7.9% | 39.6% |
| Rancho SM | 367 | 131 | 35.7% | 28 | 7.6% | 43.3% |
| San Clemente | 528 | 88 | 16.7% | 15 | 2.8% | 19.5% |
| Santa Ana | 1595 | 815 | 51.1% | 207 | 13.0% | 64.1% |
| Yorba Linda | 426 | 67 | 15.7% | 14 | 3.3% | 19.0% |
| Orange County | 15046 | 4432 | 29.5% | 951 | 6.3% | 35.8% |
Looking at the number of properties sold in the past 90 days reveals some other interesting facts. There are 951 Bank Owned REO properties currently on the market for sale, and 986 REO's sold and closed escrow in the past 90 days. This results in just 2.9 Months of Inventory which is a Sellers Market ! For those of us working in the field, this chives with experience in which many REO listings are selling rapidly and many with multiple offers. The other interesting fact to not is that there are 4,432 short sales actively listed for sale, but only 556 closed in the past 90 days. This represents 24 Months of Inventory. What is actually going on here is that the Short Sales are actually selling at a much higher rate, but these sales have a high failure rate for many inexperienced Listing Agents are having hard time getting them approved by the Banks in order to close. The moral of this story is that if you are interested in purchasing a Short Sale, make sure you are working with an experienced agent who has a track record of success with these types of purchases.
Properties Sold in the Past 90 Days
| City | Sold Past 90 Days | Short Sales | Short Sale % | REO | REO % | % Total Distressed |
| Anaheim | 337 | 44 | 13.1% | 118 | 35.0% | 48.1% |
| Huntington Beach | 364 | 31 | 8.5% | 34 | 9.3% | 17.9% |
| Laguna Beach | 49 | 2 | 4.1% | 2 | 4.1% | 8.2% |
| Mission Viejo | 226 | 22 | 9.7% | 52 | 23.0% | 32.7% |
| Orange | 223 | 25 | 11.2% | 45 | 20.2% | 31.4% |
| Rancho SM | 189 | 40 | 21.2% | 33 | 17.5% | 38.6% |
| San Clemente | 157 | 21 | 13.4% | 24 | 15.3% | 28.7% |
| Santa Ana | 306 | 41 | 13.4% | 130 | 42.5% | 55.9% |
| Yorba Linda | 134 | 12 | 9.0% | 12 | 9.0% | 17.9% |
| Orange County | 5370 | 556 | 10.4% | 986 | 18.4% | 28.7% |
Here is another way of looking at it. There are 4 times as many short sales listed for sale as compared to bank owned foreclosures (REO). But when it comes to actual closed sales, there are twice as many Bank REO closed sales are there are short sale closings.
Why you may ask ?? Here is what's going on....Short Sales are receiving offers to purchase at a much higher rate, but these transactions are experiencing a high failure rate for many inexperienced Listing Agents are having hard time getting them approved by the Banks in order to close. The moral of this story is that if you are interested in purchasing a Short Sale, make sure you are working with an experienced agent who has a track record of success with the Short Sale.
If you have any questions regarding Bank REO's or Short Sales in Orange County, contact us at: 949-388-3396 or drop us an email at: Info@OCBankREO.com Also, we just opened a new website for Banks who have REO properties for sale in Orange County, Ca.
