Percentage of Short Sales and REO’s Reach Highest Increase Since 2012

Percentage of Short Sales and REO’s Reach Highest Increase Since 2012

Short Sale Solutions

Short sales and REO sales jumped by 2.2 percentage points in the first quarter of 2015, the largest increase since the first quarter of 2012.

Three years ago, the last time distressed saturation rate experienced an increase that large, nationwide distressed saturation hit a peak of 38 percent.

“The rise we’re seeing in distressed saturation across the board is another sign that the legacy issues from the housing collapse are still being processed today, and suggests that homeowners are still trying to find a foothold in a slowly improving economy,” said Alex Villacorta, Ph.D., VP of Research and Analytics at Clear Capital.

“The uptick in distressed saturation and drastically moderating prices in the past year could mean that there is a backlog of shadow inventory hitting these judicial markets,” the report said. “If the supply continues to increase faster than demand, this area could see prices continue to fall, creating more uncertainty in overall home prices yet also potentially offering a housing bonanza with deals for investors and traditional home buyers alike.”

The Clear Capital report suggests that that the uptick in foreclosure rates in Q1 indicates that there is an abundance of distressed inventory still available, but the slow pace of the judicial foreclosure process is likely to obstruct the flow of distressed inventory.

Percentage of Short Sales and REO's Reach Highest Increase Since 2012  Short Sale Solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: DSNews.com

Percentage of Short Sales and REO’s Reach Highest Increase Since 2012

Short Sale Solutions

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