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.