I have mentioned in previous blogs that Short Sales are one way that I keep track of current market strangth.  Yes, there are several factors that can be used to stay abreast of market strength, suhc as number of home sales, amoun of inventory and others.

The reason I feel that the number of home available for Short Sale on the market is so important is because this tells us how many home owners in the market are currently in distress.  This is similar to following the number of foreclosures of course, but more accurate I believe.

I use Round Rock Short Sales as my measuring stick because Round Rock is Austin's most substantial suburb, and one of Austin's most important employers, Dell, is located in Round Rock. Round Rock real estate follows Austin closely as a result.

So, here is the latest... as of today one in every 16.7 homes for sale in Round Rock is a Short Sale. This is AWESOME news because only 3 months ago that figure was 1 in 15, and 6 months ago it was 1 in 13.  We have seen steady progress in the number of homeowners who need assistance through a Short Sale.

Understanding that Short Sales are used not just when home owners are facing foreclosure, but also when they have seen dramatic change such as job loss, causing them to fall behind on payments, and the realization that they cannot catch up is reached.

As an indicator of market strength, the percentage of Short Sales in any given market will tell you whether your market is gaining strength or deteriorating.  The Austin real estate market definitely seems to be improving, even if it is slow and steady.

Next time... changes that will affect Short Sales, home owners and the market.