It’s supply and demand. Foreclosures provide supply; cheap mortgage rates provide demand. Such bankster genius.
The Real Estate Information Network, the Virginia Beach-based multiple-listing service, reported that 938 existing homes sold last month, up 10 percent from November and 12 percent from December 2010. It was the sixth consecutive month of year-over-year increases in sales.
Increases in the sales volume can be attributed in part to distressed sales, which played a major role in Hampton Roads in the past year. Last month, foreclosures and sales by homeowners whose homes are worth less than their mortgage balances – known as short sales – accounted for 33 percent of all sales.
“The market these days is being driven by distressed sales,” said Vinod Agarwal, an economist at Old Dominion University. “They’re selling faster and the non-distressed are not selling as fast.”