News Release: Lender-mediated Supply of Homes Continues to Drop

Lender-mediated Supply of Homes Continues to Drop

FULL REPORT  |  INTERACTIVE DATA TOOL

Q2 2009 Update to "Foreclosures and Short Sales" Report Released
The inventory of available foreclosures and short sales continued to shrink in the second quarter of 2009. After reaching a historic peak in February, the number of foreclosures and short sales available for sale has fallen by more than 2,100 units to 6,685 at the start of July—the fewest available since March 2008.

With the $8,000 federal tax credit for first-time home buyers and low mortgage rates sparking buyer interest, expect the supply of available homes to continue to fall through the remainder of the year.

New analysis of RMLS data indicates that the supply of bank-owned foreclosures (excluding short sales) is much smaller. There were 1.84 bank-owned foreclosure homes available for each buyer in June—compared to 5.10 homes owned by a traditional seller and 10.22 homes in a short sale situation.

In sum, the supply of bank-owned foreclosures is dwindling quickly, while short sales aren't being absorbed as quickly.