Posted by & filed under Short Sales, Stockton Real Estate.

People are buying up short sales and foreclosures at the expense of conventional sales and if the housing market is ever going to recover, the banks need to get short sales closed at a much quicker pace. The average short sale length in some communities has increased to 298 days and even up to a year in some cases. These long turnaround times discourage many potential short sale buyers as they turn to cheaper and quicker foreclosure options. These homes lingering as pending short sales in addition to the new short sales flooding the market has created a two-year supply of short sales on the market. At that rate, the first possible opportunity to see a market recovery wouldn’t be until 2012. However, if banks could improve the short sale approval times, much of that inventory would disappear. It seems like this would be simple and banks would be working toward this goal. Instead the banks are concentrating on foreclosures and selling them at much bigger discounts, devaluing properties across the board. It is no wonder realtors would rather wait for a property to foreclose reducing cost and closing time. So whether we like it or not, the banks are in control of the market and unless their actions change to improve the short sale procedures and stabilize the market, it will be a while before things recover.

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