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If you are interested in finding bank-owned and short sale properties, you can learn how to search for distressed properties here. Otherwise, please see our monthly distressed property report below.... The December Dane County Distressed Property Index was .23 - up from .18 in December of 2008 - and down from November's value of .24. 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 and the demand for housing has decreased.
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 6 to 12 months due to the recent surge in foreclosures.
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How the index is calculated
The index includes the following variables: (A) The number of Dane County foreclosure filings that occufrred 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 December 2009 Distressed Property Index includes the following variables: (A) 1,451 Dane County foreclosure filings from July 2008 through June 2009 (B) 5,474 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 The December 2009 DPI = (1,451)/(5,474 * 1.15) = .23
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.
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