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People Who Purchase Single Family Homes Favored Short Sales in 2010

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By : John Cutts    99 or more times read
A big number of buyers and investors who went on to purchase single family homes and other types of residential properties in 2010 acquired their properties through the process of short sales. Figures for short sales jumped in most parts of the U.S., particularly in Florida.

Hollywood home foreclosures list and distressed property numbers in the whole state continue to increase during the year, but some positive developments also happened, with short sales contributing to the number of housing sales that helped cut down the oversupply in the market. The South Florida region, comprised of Miami-Dade, Palm Beach and Broward, recorded a short sale transaction increase of 49% compared with 2009.

Analysts stated that the continuous rise in unemployment rates means that in 2011, foreclosure lists in Florida will continue to expand. They also predict that short sales will account for an increasing percentage of housing sales in the region and the whole U.S. as buyers and sellers become more familiar with the process. Data for 2010 showed that a total of 16,800 dwellings were sold through short sales for the period.

Housing market analysts have also stated that more lenders are seeing the positive side of using short sale as the process of choice to purchase single family homes and how it can be better than foreclosure. For the part of buyers, short sale is a way to unload their properties without harming their credit standing in the process. A total of 19,800 residential properties were sold in South Florida during the year, representing a 6% decline when compared with the 21,050 total posted in 2009.

Realtors have reported that most homebuyers still favor REO and foreclosure homes, but more and more lenders are becoming reluctant to unload such dwellings because of the status of the industry and the overall economy. Houses sold through short sales had an average price of $173,700 in 2010 compared with the average price of bank owned homes which was pegged at $110,900.

For 2011, experts are predicting that more buyers who will purchase single family homes and other types of residential properties will be involved in short sale transactions rather than foreclosed property sales. They added that this can help lower the number of foreclosures in the U.S.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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