Diana Olick says: The housing market is shrinkingThe foreclosure headlines today are that one third of all homesales in Q2 were of distressed properties (foreclosures and shortsales). The discount on those homes from comparablenon-distressed properties was 32 percent. What the headlinesdon't say is that while the percentage of the market that'sdistressed rose from a year ago, from 26 to 31 percent, theactual number of distressed sales fell. The share only went upbecause the number of non-distressed sales fell, leaving thetotal pool smaller. And there's the biggest problem in housingtoday. Sellers are afraid to put their homes on the market forfear of losing too much equity, which means there are fewerpotential move-up buyers. First time buyers are choosing to rent in droves, as unemplo...
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