It’s common these days to read the news and see an article or two on the significant rise of foreclosures and short pay sales. There has been evidence of a clear upward trend in most communities across the country. The South Bay has experienced an increase in the number of these types of sales, as well as a modest increase in the percentage of these sales with respect to all closed sales. During the first quarter of last year, 37 sales were characterized as being short pay, bank-owned (REO), or foreclosures. For the first quarter of this year, the number of these distressed sales increased by a surprising 83 percent to 68. The percentage of these types of sales with respect to all sales climbed from 13 percent to 16 percent year-to-year. What is particularly worthy of note is that regardless of the growth in the sale of distressed properties, the median sales price for homes has actually risen.
The three beach cities of Manhattan Beach, Hermosa Beach, and Redondo Beach accounted for 22 of the 37 distressed sales back in the first few months of 2009. This past quarter, they were the source of 40 of the 68 distressed sales, which turns out to be about the same percentage of the total both years.
Of the 37 distressed sales in the first quarter of 2009, it appears that only one was priced above $1.5 million. This year that number jumped to five for a total percentage of seven percent of the distressed sales. We are not seeing a significant amount of this type of activity for the higher-priced homes, though there does appear to be an increase underway.
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Posted by Tony Cordi 
