There is no denying that one of the major influences on the current real estate market in Jackson County is the competition between houses being sold under normal circumstances…and those that are being sold under duress.
REO’s (not to be confused with ROUS’s) are the easiest of these properties to gauge value of. Because these properties are already bank owned, when they are listed in the MLS, you know the bank will accept a full price offer…and probably one with 3-5% of the asking price.
However, the market is also being affected by the pricing of houses that are Short Sales. The problem with that is that these houses, even if a full price offer comes in may not be sold for that price…But their pricing has buyers gauging value of all homes based on those prices.
It turns into a bit of a spiral…because if sellers of non-duress properties want to sell and compete..they need to drop their prices…but then the short sale properties in order to be attractive must drop their prices as well.
I will provide a by the numbers report shortly…
P.S. For the definition of ROUS’s…please consult The Princess Bride.