First-time buyers moving away from short sales

First-time homebuyers are a lot less interested in short sales than they used to be, according to a Campbell/Inside Mortgage Finance survey reported by HousingWire.

  • In November 2009, first-time buyers accounted for 54.1% of all short sales.
  • In August 2011 they accounted for 39.7% 0f short sales, the lowest ever recorded by the survey, which began in mid-2008.

Why the drop? Could be lots of things. The obvious one, of course, is that while short sales are typically priced about 27% lower than ‘regular’ sales, they also take an average of 17 weeks to complete. With prices down and inventory high, first-time buyers may be finding great deals without having to put up with the short-sale process.

Distressed property currently accounts for about one of every six residential sales.

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About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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