Tuesday, July 20, 2010

REO sales outselling New Homes

New home sales are usually 20% of the market of homes sold and are currently at 11% (sales of homes so far in 2010), and REO sales (Bank Owned Properties) are at 19.50% of total homes sold, with 69.50% as resale homes (which includes short sales). 

With the excellent buys of REO and Shortsales, it is no wonder why sales are skewed in favor (at the expense of new home sales) of existing home sales. 

I read an article yesterday which made a good point about the shortage of homes and apartments which will be available once the economy turns around.  With the low number of building permits and new home sales right now, a shortage of housing looks realistic. 

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