According to RealtyTrac Inc., Foreclosure Sales, which include homes purchased after they received a notice of default or that were repossessed by lenders, accounted for 31 percent of the market in the April-June quarter. That is approximately one in every three homes that were sold in Q2 were distressed properties...
"But the good news is many of these distressed sales are clearing faster, with streamlined short sales now making up a greater share of all distressed sales. Banks are getting rid of troubled loans/properties before having to go the more costly route to foreclosure!" CNBC's Real Estate Reporter, Diana Olick's stated in her recent article:
"The Housing Market Is Shrinking!" ...
Diana began by saying: "The foreclosure headlines today are that one third of all home sales in Q2 were of distressed properties (foreclosures and short sales), according to a new report from online foreclosure sale and data site RealtyTrac.
The discount on those homes from comparable non-distressed properties was 32 percent.
What the headlines don't say is that while the percentage of the market that's distressed rose from a year ago, from 26 to 31 percent, the actual number of distressed sales fell. The share only went up because the number of non-distressed sales fell, leaving the total pool smaller.
And there's the biggest problem in housing today.
The granular, organic, whatever you want to call it…non-distressed market is withering away. Sellers are afraid to put their homes on the market for fear of losing too much equity, which means there are fewer potential move-up buyers. First time buyers are choosing to rent in droves, as unemployment and the wider economy recover far more slowly than expected. This, despite the fact that, nationally at least, it now costs about the same to rent as it does to own. Just look at where the mortgage payment-to-rent ratio has gone over the past few years.
Rent, as a percentage of income, is rising and household formation is slowing at an alarming rate, eating into that much-needed first time home buyer demand. The good news is that distressed sales are clearing faster, with streamlined short sales now making up a greater share of all distressed sales. Banks are getting rid of troubled loans/properties before having to go the more costly route to foreclosure."
To read Diana Olick's entire article go to:http://www.cnbc.com/id/44274402
To learn more about Short Sales go to my website: NHShortSale911.com
To View My Blog go to: NHShortSaleCenter.com
Comments(1)