Here’s my Rio Rancho foreclosure report for 2014.
Foreclosures, also called bank owned homes or REO’s, have been a fairly big part of the Rio Rancho real estate market over the last five years, but it wasn’t always that way. In fact when I first got my Realtor’s license in 2004 foreclosures were practically unheard of and I didn’t even know what a short sale was!
Related post: What is a Short Sale?
One day soon, when short sales and foreclosures have all but disappeared, we’ll look back on the last 5 years and we’ll wonder when the next great opportunity to buy Rio Rancho homes at greatly discounted prices will be.
–These stats are for property sales in the city of Rio Rancho only! Albuquerque numbers are not included. Albuquerque Foreclosure Report for 2014. And we’re talking about the sale of already foreclosed homes called Bank Owned or REO homes, not new foreclosure starts. REO stands for Real Estate Owned.
Related post:Foreclosure terms explained.
Foreclosure Sales in 2014
Here is a chart depicting short sale closings in 2014. From this chart it’s hard to spot any trends.
During the year, foreclosure sales made up between 15% and 32% of the closed home sales in Rio Rancho. Averaged out over the course of the year bank owned or REO homes made up about 22% of closed sales. That’s about 8% higher than the city of Albuquerque.
Notice that the numbers in the chart represent not the total number of foreclosure sales each month, but rather the percentage of all sales that were foreclosure sales.
Foreclosure 5 Year History
The five year history of foreclosures is just as erratic with a surprisingly high number of closed foreclosure homes in 2013.
Short Sales in 2014
We can see the outline of a declining trend in the chart below. By year end 2014 short sales were making up between 2 and 5% of closed sales.
Short Sale 5 Year History
When we look at the five year history we see a strong decline in short sales over the last three years.
Prediction for 2015
I would expect to see a similar number of bank owned home sales at least during the first part of 2015. There are still bank owned homes that need to be liquidated. I expect that short sales will remain at the same low levels that we saw at the end of 2014, around 3 or 4% of the market.
by Albuquerque/RioRancho real estate agent Rich Cederberg, eXp Realty (505) 803-5012.