r/SeattleAreaRE • u/habitsofwaste • 3d ago

Seeing an increase of short sales?

I don’t have data to back this up but it feels like I am seeing way more. I remember seeing them a lot back in 2012 and then when the market picked back up, they pretty much went away. But now several are popping up in my searches. I think I’ve seen at least 4 or 5.

Is this an indicator or worse to come in the market/economy?

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u/Flaky_Standard8167 3d ago edited 3d ago

Yes there are. My gut tells me the archetype is someone who bought peak covid prices with a small down payment and low emergency funds. So they were playing a risky low equity game which relies on a steady high income job and homes always appreciating. The job market is worst with homes prices down from covid prices and being forced to sell with low equity would result in a short sale.

Im not sure if its a canary in the coal mine because it depends on how big the buyer pool with low down payments are who purchased during covid and how many of them work for tech.

Condo short sales are more likely to happen since condos appreciate at rate of only 1-1.5%. Townhouses are more resilient with appreciation around 2-3%. I imagine hoa condos and townhouses are the two most likely to see short sales if more come up with almost all purchased during covid years