Short Sales Romance With 1st Time Buyers Becoming Less Alluring

Processing times are mangling the short sale segment—particularly for first time buyers according to RISMedia.  In reporting the results of the latest Campbell/Mortgage Finance HousingPulse Tracking Survey, RISMedia states that one in every six house sales came from short sales according to a survey of 2,500 agents across the country  

  • August first-time homebuyers represented 39.7 percent of short sale transactions—the fewest in three months and the lowest ever recorded for first-time homebuyers
  • Short sales accounted for 17.1 percent of all sales volume in August 2011 while damaged REO represented 13.2 percent of sales and move-in-ready REO at 15.6 percent.   These three segments accounted for almost one half (45.9 percent) of all residential sales in August, down slightly from 46.2 percent in June 2011
  • Short sales represented 31 percent of the California housing sales volume in August 2011
  • Approval times on short-sale offers still running into months—with an average time on the market of 16.6 weeks
  • First-time homebuyer’s share of short sales peaked at 54.1 percent of all short sale transactions in November 2009—immediately prior to the first-scheduled maturity of the $8,000 homebuyer tax credit (which was then extended to June 30, 2010 provided the contract was signed by April 30, 2010)
  • Average short-sale prices are 27 percent lower than other non-distressed properties

First-Time Buyers Losing Interest in Short Sales- Real Estate Economy Watch

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  1. Marisue Mullins

    How can I subscribe to this blog? I did not find anywhere to do it. Thanks.

    Marisue Mullins

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