Short Sales Higher, Prices Lower:
By Diana Olick, CNBC Real Estate Reporter
NEW YORK (CNBC) -- Buyer traffic is strong, supply of homes for sale is low, and yet home prices continue to defy the usual formula, falling again in March. Prices usually rise as supply shrinks, but demand is still too low to make those historical "norms" compute, not to mention that the type of supply available is largely distressed.
Foreclosures and short sales (when the home is sold for less than the value of the mortgage) accounted for 47.7% of sales, in a three month running average measured by Campbell/Inside Mortgage Finance. That's the 25th month in a row that distressed sales have topped 40% of the market.
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By Diana Olick, CNBC Real Estate Reporter
NEW YORK (CNBC) -- Buyer traffic is strong, supply of homes for sale is low, and yet home prices continue to defy the usual formula, falling again in March. Prices usually rise as supply shrinks, but demand is still too low to make those historical "norms" compute, not to mention that the type of supply available is largely distressed.
Foreclosures and short sales (when the home is sold for less than the value of the mortgage) accounted for 47.7% of sales, in a three month running average measured by Campbell/Inside Mortgage Finance. That's the 25th month in a row that distressed sales have topped 40% of the market.
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