Short Sales Pass Foreclosures in January - |

Armando Montelongo Team Blog

Short Sales Pass Foreclosures in January

Short sales surpassed foreclosure deals for the first time in January, according to news reports.

Data from Lender Processing Services, as reported by Bloomberg news, said short sales were 23.9 percent of home purchases for the month, compared to 19.7 percent for foreclosed homes.

“It’s a fairly recent phenomenon that short sales have been increasing,” Jonathon Weiner, a vice president in the applied analytics division of Lender Processing Services, told Bloomberg. “Short sales should be the dominant way of disposing of assets.”

In January 2011, 16.3 percent of transactions were short sales and 24.9 percent were foreclosures.

Weiner told Bloomberg that the increase in short sales is a sign that lenders are making progress in dealing with the huge inventory of distressed properties, hastening the end to the downward slide in home values.

“Our baseline scenario is that home prices will hit a bottom at the end of this year,” he told Bloomberg.

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