May 11, 2012
Distressed sales plummet in MRIS territory
11 May 2012
Posted by Andrew Kantor
We’ve now got MRIS’s April numbers for foreclosures and short sales. Short sales are slightly up, but foreclosures are waaaay down.
- Short sales: 12.2% of the market, up about 3% from last April
- Foreclosure sales: 11.0% of the market, down 47% from last April
- Total distressed sales: 23.2% of the market, down 29% from last April
Granted, having a market where almost a quarter of the sales are distressed isn’t a Good Thing, but there’s a sense to it. People bought near the top of the bubble and have to sell (for whatever reason — job, life change, etc.). So they either take the hit or work out a short sale with their lenders.
That means that short sales are going to continue to be a noticeable part of the market for as long as lots of folks own homes bought between, say, 2004 and 2007. If they have to sell, they’ll have to sell at a lower price, ’cause it’s gonna be a while before prices are back up to those unnatural highs.