According to an article published by DSNews yesterday, HousingPulse Tracking Survey released a study showing that nearly half of home sales that happened in March 2011 involved distressed properties and short sales have reached a record-high. The following is an excerpt from the article in DSNews:
“Within this distressed property segment, the market analysis shows a boom in short sales during the month of March to record-high levels and a drop in the proportion of damaged REO.
These deductions come from the HousingPulse Tracking Survey generated by Campbell Surveys and Inside Mortgage Finance.
The survey’s overall distressed property index rose to 48.6 percent in March – the second highest level seen in the past 12 months.
Short sales rose from 17.0 percent in February to a record-high 19.6 percent in March. Over the same period, damaged REO fell from 14.9 percent to 12.0 percent.
The report referred to both developments as “a positive sign” for the market.
Short sales can eliminate the sometimes long periods of time a home sits vacant after it is repossessed by the lender after foreclosure, and because damaged REO has the worst effect on comparables used for appraisals, smaller amounts of damaged REO should be a positive for home values in future months.”