I guess those luxury foreclosures I've been reading about in the Washington Post and on CNBC have spread to Deep Creek Lake as well (as expected). Click here for more details on 199 UPPER HIGHLINE Dr. This property has been more or less listed for sale for three years now and is yet another DC Development LLC property gone bad.
And two more in Waterfront Greens at Deep Creek Lake (another area with a checkered sales history that I've previously blogged about) at 335 WATERFRONT GREENS Dr and 342 LAKEFRONT LINKS Dr. Apparently, all that supposed rental income wasn't enough to keep the current owners afloat, so potential buyers dodged a bullet by not falling for the "analysis" of a real estate agent on this one.
Another still two more on Shingle Camp at 3285 SHINGLE CAMP Rd and 38 SHINGLE CAMP Ter. I guess "few and far between" was in the context of the massive Deep Creek inventory, not the modest number of monthly sales.
At this point, I really have to question whether the author of the real estate blog which has made claims about the market being well and improving daily (in 2008) and recently stating that distressed sales are few and far between is being forthright in his disclosure. If you are in the market you should be asking these questions as well! Buyer beware!
Don't forget to check back to Dan's Deep Creek Blog for your future updates on Deep Creek real estate.
Tuesday, June 29, 2010
More Deep Creek Short Sales ..
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2 comments:
Dan,
While there is no doubt it an acutely stressful economic period for many people, foreclosures and short sales are not rampant in the area. According to the MLS, foreclosures make up 1.5% of inventory and potential short sales account for 2%. Might be better for your argument to be a little less biased.
Andrew,
Thank you for your comment. I think if you would have taken the time to read the entirety of my post you would have seen that I acknowledged that potential short sales were small in number relative to the level of inventory, but not as a fraction of actual sales. So while these potential sales represent only 2% of total listings, they also represent approximately one full month of sales. Of course, there is also the chance that a number of those other listings are going to fall into distress prior to actually clearing the market (which I'm sure you are aware could take up to 4 years at the current pace of sales even if no new listings come to the market).
You do, however, bring me to a point which I failed to make clear. The real point is that as the dollar volume of total sales has declined in recent years the dollar volume of distressed sales has increased dramatically. Thus, these distressed sales are a growing fraction of the total Deep Creek market (as I suggested would be the case several years ago). I expect this trend to continue and if you took the time to read the linked Washington Post article you would have seen that agents working in the luxury market of the DC suburbs (where a number of Deep Creek buyers reside) concur with this belief.
"The foreclosure signs that have been sprouting up in less-affluent communities since 2006 are beginning to appear in the well-off suburbs, attached to houses that once cost $1 million or more. Although those kinds of homes are in the minority now, real estate agents predict the numbers will swell."
This could be just the tip of the iceburg, but really you and I should be looking at the trendlines to see what is or is not happening. I haven't had the time to do that just yet, but it will come. If you have data to show that the dollar volume of distressed sales is declining relative to the dollar volume of total sales please share it with my readers. Somehow, I doubt that data exists ..
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