Based on information from the November 2012 REALTORS® Confidence Index Survey, foreclosed property sold on average at a 20 percent discount, while short sale properties sold at a 16 percent average discount.
The discount to market experienced by distressed property is affected by the property’s physical condition. Well maintained properties tend to sell at a lower discount than is the case for properties in poor condition. The unweighted average price discounts to market are presented for the current survey month as well as the 12 month period from December 2011 through November 2012. REALTOR® respondents reported price discounts for distressed houses with above average condition at about 13 to 15 percent, and price discounts of 34 to 38 percent for the properties in the poorest condition.
- Foot traffic and future home sales have a strong correlation. SentriLock, LLC. provides NAR Research with monthly data on the number of showings.
- Foot traffic in the area covered by the North Shore-Barrington Association REALTORS® (Chicago, IL) has been stronger each month in 2012 compared to the corresponding period in 2011 with traffic in November 17% stronger than a year earlier.
- This consistent strength speaks to the impact of record mortgage rates, stable job growth, steady price growth and the buyer confidence that they are inspiring. This trend will help to draw down inventories and to sustain a price recovery.
- Foot traffic can give a strong indication of future home sales. SentriLock, LLC. provides NAR Research with monthly data on the number of showings.
- Foot traffic in the area covered by the Siskiyou Association of REALTORS® (Mt. Shasta, CA) has been stronger all year as compared to 2011. Traffic has hovered between 20% and 140% stronger than a year earlier over the last twelve months and was 90% stronger in November as compared to a year earlier.
- Record mortgage rates coupled with stabilizing prices and dwindling inventories are helping to drive this trend.
Based on responses to the November 2012 REALTORS® Confidence Index Survey, all states are expected to see home price increases in the next 12 months. The graph below shows the median expected price change for the next 12 months. The states are classified into “low” (0.5% – 2.4 %), “middle” (2.4- 2.9%), and “high” (2.9 -5.6%) expectations.
- States that suffered heavily during the housing bust, such as California, Nevada, Texas, and Florida, are in the group of states expecting the highest prices increase, as much as about 5 percent (upper third).
- Most Northeastern states, including New York, are expecting the lowest price increase.
- Across all states, the median expected price change for the next 12 months is 3.1 percent.