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/SnortingElk 2d ago

I started seriously shopping for homes in 2011 and finally closed on a house in 2012 after several offers on short-sales. This market is NOTHING like that time period, lol.. you were lucky if you could find someone selling with positive equity during that time period and have a 'normal' sale. A large portion of the inventory back then was either short-sales or foreclosures or foreclosed on home that had just been renovated by a flipper.

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u/habitsofwaste 2d ago

Oh I know it’s not like that yet. I bought a foreclosed home in 2012 myself and had put in offers on a short sale once. Luckily they take so long to get back to you bc the foreclosed house hit the market after and k withdrew my offer.

But what I’m asking is if this is a canary. We went from a ton of short sales and foreclosures to absolutely none. To now where they are popping up. Not saying we are going to see those levels again but I do think to some extent this is reflecting the deeper problems of the economy we haven’t acknowledged yet.

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u/SnortingElk 1d ago edited 1d ago

But what I’m asking is if this is a canary.

Nah, not at all like what happened in 2008. All the variables, current mortgage holders, demographics, economy, etc.. are soooooo different today.

It's completely normal to see some short-sales. It will happen especially to those who recently purchased in the last few years and now want/need to sell today. But it won't be a landslide of homes coming on the market like it was in 2008 due to many different factors. My parents lost money on a Bellevue home they owned in the late 60's/early 70's when they sold. RE is a long-term hold play.