US banks are finally making a difference in the battle to clear the large distressed property inventories plaguing real estate markets by agreeing to increased numbers of short sales, it’s been revealed. What’s more, the average short sale transaction is being completed much faster than before, reports real estate analysis firm RealtyTrac.
Speaking to Bloomberg, RealtyTrac’s vice president Rick Sharga said that:
“This is a glimmer of hope that lenders are getting more realistic. It’s a win for borrowers who avoid foreclosure, buyers who get a house in better condition and banks that lose less money, which is also a win for taxpayers.”
The increase in the number of short sales is a key indicator that distressed properties are finally being cleared from the market more efficiently, pointed out RealtyTrac.
Over the second quarter of this year, homes near to foreclosure amounted to 12% of the total number of residential property transactions, and banks agreed to a larger number of deals on properties which were priced below the outstanding mortgage balance.
More encouragingly, the average time it took to sell a pre-foreclosure home also decreased, taking just 245 days instead of the average 256 days reported in the first three months of 2011, reported RealtyTrac.
Short sales or sales of homes in the process of going through foreclosure sold for an average discount of 21% – $192,129 on average – when compared to non-distressed property sales.