Distressed Sales Decreasing
Distressed sales have decreased this last year, dropping to the lowest since records began in 2008. These sales accounted for 9% of the total sales last month. Distressed sales can include foreclosures and short-sales. Having less distressed property sales can only suggest the economic improvement that has taken place. Budge Huskey, President and CEO of Coldwell Banker Real Estate, said in a recent interview with Bloomberg that “We (the US) are moving from a market that was driven by the overcorrection, driven by distressed asset sales, to a market that’s returning to being based on the fundamentals,” suggesting that when less distressed sales are carried out, the general market will act less volatile. Cheaper borrowing costs have also helped the situation. An average 30-year fixed rate mortgage hit 4.1% the week of August 21st, the lowest this year. Residential construction start ups increased in July to an annual pace of 1.09 million units, the highest it had been in 8 months.