|
The June Dane County Distressed Property Index was just under .25 - up from .23 in June of 2009 - and down a fraction from .25 the previous month. Our data tracks back to January of 2006, when the index stood at .05. Note from the graph below the index has grown steadily over time as Dane County foreclosures have increased steadily over time.
How to interpret the index
The index measures the ratio of foreclosure filings to home and condo sales in Dane County over a 12 month time period. It approximates the percentage of distressed sales (those relating to foreclosure) in the Dane County housing market. For instance, a Distressed Property Index of .25 indicates approximately 25% of the current Dane County housing market involves distressed properties. We expect the percentage of distressed property sales to remain above 20% for at least the next year due to the continuing high level of foreclosures and lower home sales over the coming months.
Related articles
How the index is calculated
The index includes the following variables: (A) The number of Dane County foreclosure filings that occurred during the 12 month period beginning 18 months prior to the current month. This timeframe is chosen because most foreclosure filings result in either a short sale, a sheriff's sale, or a lender-owned sale - many of which do not occur until 6 to 18 months after the filing. (B) The number of Dane County homes and condos sold via the South Central Wisconsin MLS during the previous 12 months. (C) A factor for FSBO (for sale by owner) transactions. Dane County FSBO sales are roughly 15% of the volume from the South Central Wisconsin MLS. Using the variables above, the Distressed Property Index is calculated as follows: Distressed Property Index = (A)/(B*C) The June 2010 Distressed Property Index includes the following variables: (A) 1,695 Dane County foreclosure filings from January 2009 through December 2009 (B) 5,963 Dane County homes and condos sold via the South Central Wisconsin MLS during the prior 12 months. (C) A FSBO sales factor of 1.15 DPI = (1,695)/(5,963 * 1.15) = .25
About us
This information is provided courtesy of Dan Miller and Shawn Kriewaldt of Keller Williams Realty and DaneCountyMarket.com, and Peter Zarov from Homestead Title. For more information, please contact Dan at 608-852-7071 (danielmiller@kw.com) or Shawn at 608-212-5743 (shawnkriewaldt@kw.com). Peter Zarov can be reached at 608-203-4805 or peter@homesteadtitle.net. Don't forget: if you're buying or selling, whether your timeline is 3 months or 3 years, we can help.
Track the market and search for real estate
- Did you know you can receive our monthly updates via email? Just go to our newsletter sign-up, enter your email address, and select your topic(s) of interest.
- Our map-based search tool is easy-to-use. Learn how you can simplify your search by saving your search settings, receiving email updates, and tracking your own list of "favorite" properties.
|
Print Version 