REO sales no longer play the dominant role they once did in real estate transactions. The recent decline in REO sales, along with the decrease in inventory, is helping the market see an improvement in prices, according to a report from Corelogic.
Lack of inventory also helped to sustain home price increases in 2012. According to Corelogic, months’ supply of inventory reached 12 months in July 2010, but as of November, months’ supply has fallen to 4.8 months.
Looking ahead, CoreLogic expects 2013 to be “poised for further recovery” and projects prices will increase 6 percent.
According to the data provider, high affordability, diminishing REO sales, and the low inventory will fuel the price gains expected ahead. As prices rise, CoreLogic also explained more inventory will become available as underwater borrowers currently locked out of the market and opportunistic sellers begin to list their homes. Read more....
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