RSS Feed by Calculated Risk on 5/11/2012 02:03:00 PM
Friday, May 11, 2012
Lawler: Fannie SF REO Inventory: Total vs. “Listed/Available for Sale”
From economist Tom Lawler:
In its latest 10-Q filing Fannie Mae showed the distribution of the “status” of its SF REO inventory, including the % it was unable to “market” for various reasons. (Fannie’s SF REO inventory as of 3/31/2012 totaled 114,157 properties, down 25.5% from last March).
Of Fannie’s 114,157 SF REO properties, almost half – 54,795 – were characterized as being “unable to market” (meaning can’t be listed for sale). Another 11,416 were not yet “listed” or “available” for sale because the properties were still being appraised (so that a list price can be determined). That left just 47,946 properties that were available for sale (listed), of which 22,831 already had a purchase offer accepted but which had not yet closed escrow.
Every so often some “quack” writes a piece saying that “lots” of GSE REOs aren’t listed for sale, “proving” that the GSEs are “holding properties off the market.”
Hopefully disclosure such as these will make such quacks “duck” for cover.
Click on graph for larger image.
CR Note: The Fannie table is below. Here is a pie chart showing the distribution of REO.
The "blue" categories are "marketable" (and many are in escrow).
The "orange, yellow, red" categories are not currently marketable. Some are within the state redemption period, some are rented, some are in the eviction process, some are being repaired ...
NOTE: Table below has a sub-total for "unable to market" that includes the categories below it:
| Fannie Mae SF REO Inventory by "Status," March 31, 2012 | ||
|---|---|---|
| Percent | Number (derived for categories) | |
| Available for Sale | 22% | 25,115 |
| Offer Accepted But Not Yet Sold | 20% | 22,831 |
| Appraisal Stage (pending appraisals) | 10% | 11,416 |
| Unable to Market: | 48% | 54,795 |
| Redemption Status (properties within state redemption period) | 13% | 14,840 |
| Occupied Status (eviction process not yet complete) | 14% | 15,982 |
| Rental Property (tenant under Tenant in Place or Deed for Lease programs) | 8% | 9,133 |
| Properties Being Repaired | 5% | 5,708 |
| Other | 8% | 9,133 |
| Total | 100% | 114,157 |
