Short sales continue to rise! Short sales, a sale in which the homeowner sells for less than the mortgage amount, continue to rise. Market survey data indicates that, nationwide short sales are growing, although the rate of growth varies, typically in sync with the underlying health of a region’s housing market.
The Twin Cities saw a big jump in short sales in 2009, and that trend continued this spring, although at a slower pace. As of March, the number of short sales in the Twin Cities area had risen 52 percent from a year earlier, according to Multiple Listing Service (MLS) data compiled by MAAR.
As short sales have increased to account for over 10 percent of all home sales in the Twin Cities, foreclosures have declined. From early 2009 to early 2010, “lender-owned” sales fell 38 percent in the metro area
The surge in short-sale activity is unlikely to last for more than a year or two. Short sales will likely decline when housing prices rebound.
Rates Remain Historically Low!
Across the board, interest rates have continued to stay at historical lows over the past few weeks. The combination of low rates and low home prices make for a perfect opportunity to find a “deal” in today’s market. If you have been thinking about purchasing, now really is the time to get it done.
Contact The Dave Hill Team at Prime Mortgage to discuss the variety of financing options available to you.
