According to market research firm Realty Trac, 12 states had more short sales than foreclosures in January. In year-over-year statistics, short sales increased 33 percent from January 2011 to January 2012. This is great news for our recovery because short sales tend to sell for more than foreclosures.
Bloomberg News reported last week that mortgage tracker Lender Processing Services data said that in January short sales actually surpassed foreclosures for the first time, with Florida being one of those states in which that was true. Nationwide the number of foreclosure exceeds the number of short sales, but expect to see that gap lessen as banks get their acts together and stop making short sales so difficult.
The rise in short sales is also due to lenders pricing the homes more realistically. According to Realty Trac, the average short sale price in January was 10 percent lower than a year earlier, which exceeds to overall average decline in pricing from January 2011 to January 2012.
No comments:
Post a Comment