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Thursday
Aug252011

Rise in Short Sales Offers 'Glimmer of Hope' for Housing Market

ABC News(IRVINE, Calif.) -- Pre-foreclosure sales rose 19 percent in the second quarter of 2011, and close to a third -- 31 percent -- of all U.S. residential sales during that same time period were foreclosed homes, according to RealtyTrac's latest report released Thursday.

And, as Rick Sharga with the foreclosure tracking firm explains, that may not necessarily be a bad thing.

"The fact that we're seeing a significant increase in the number of short sales actually is a glimmer of hope in this month's report," he says.

Sharga says its a clearing out of distressed inventory which is an overall good thing for the housing market.

"It looks like the banks are getting serious about trying to move these distressed properties more quickly, more efficiently and because they're doing this at a lower discount, it also helps to bring some stability to home prices and slow down the price depreciation that's been plaguing the housing market for the last few years," he explains.

Copyright 2011 ABC News Radio

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