Executive Home Sales Starting To Go Short

We've been watching the market and many homes from the starter to the $350,000 price range are mitigated one way or another by a lender.   IE: They are either bank owned (REO) or they are in a short sale situation.  We've written about this in the past but there is a curiously interesting phenomenon starting to take place:  Executive style homes are now starting to find themselves in the same category: Short.

Why is this happening?  Well, we believe it is the market continuing to correct itself.  As the prices of the lower home categories have continued to fall, the next logical step for sellers that become buyers is to move up in home category.  That could be from the $150,000 home to the $250,000 home for example.  However, when the executive homes failed to follow suite with the rest of the market, the buyers dried up even more for the $1M homes.  There was/is too much of a gap for the home buyer to leap over to get into that final stage of an Executive Home.

The interesting thing is that the prices of these homes have PLUMMETED. You may have not noticed when the $300,000 home retracted in value to $200,000 (as much anyhow).  You cannot pass on the elephant in the room though when it goes from $2,000,000 in value to under $1,000,000.  That one is hard to miss.

So, as the market continues to lower itself (We're firm believers that the bottom is nowhere near in site), more and more people will need to attempt to sell there home via short sale.

Please get a hold of Twin Cities Short Sale Realtor when you have questions regarding your personal situation.