The housing market in the U.S. is showing steady growth since March 2012. But, what is the future of short sales in 2014? From a high of 12.5 million homeowners in September 2012 with deeply underwater properties that represent 28 percent of all the U.S. residential properties, the figure has come down to 11.3 million underwater properties by May 2013, which represents 26 percent of all residential properties in the U.S. that have a a mortgage.
Home prices in U.S. are increasing at a rate of 1.33 percent for every month since March 2012; this provides hope for many homeowners with negative equity. But the fact is that there are still 10.7 million residential homeowners across the U.S. (representing 23 percent of residential properties with a mortgage) that are still underwater; this proves that it will a significant period of time for short sales to trickle out of the marketplace.
Although the housing market is witnessing positive growth, the growth is not quite as strong as it appears on the surface. Agents can still find many clients willing to go through the short sale route for the months to come.
With 2014 just around the corner, it’s time to consider your business plan. Should you include short sales? Well, statistics show that if you have worked short sales in the past, you probably should not rule them out as one of your target markets of 2014. With 23 percent of residential properties with a mortgage still underwater, the future of short sales is this: you may see a few short sale closings among your list of closed transactions in 2014 and beyond.
Source: RIS Media