From the MAAR:
The overall January median sales price of $155,000 is 24.4 percent and a $50,000 lower than last January’s mark of $205,000. However, a staggering 59.9 percent of closed sales in January were from the lender-mediated segment, which had a dramatic downward effect on the overall median sales price.
Pending sales during the month posted a figure of 2,827, an increase of 10.3 percent from last January. This is the eighth consecutive month of year-over-year increase. Closed sales saw an increase of 2.1 percent in January, posting 2,010 units.
Traditional properties, which exclude foreclosures and short sales, had a January median sales price of $215,000,cdown 4.3 percent from last year, while lender-mediated homes had a median sales price of $122,000, down 21.4 percent for the same year-over-year comparison.
When “lender mediations” are 60% of the market, it’s getting tougher to say “just ignore that other market” when it mostly IS the market.
And also, aren’t lender mediated sales, by definition, failed traditional sales? I mean, IF the original owner could have sold the home without taking a loss, they would have, right? But they couldn’t, so the bank gets them.
Anyway, where exactly does this ”tale of two markets” narrative get us? Anyone?
The only thing it might tell us is that the banks have gotten cheap and/or crap condition homes back first, since those are the ones they are selling.