REOs still hamper market but market time dwindles

The pressure on overall home prices from distressed properties is still haunting the housing market, according to the latest Campbell/Inside Mortgage Finance HousingPulse tracking survey.

However, homebuyer demand is growing, the survey finds. The average time on the market for real estate owned by banks (REO) is more than 10 weeks, which is at its lowest point in more than a year.

The average price for a short sale during November was $209,200. The average sales price for move-in ready REOs was $189,700, and $98,600 for damaged REOs sold.

Distressed properties represented 46.1 percent of all home purchase transactions in November, according to the survey, while short sales accounted for 17.6 percent of purchase transactions.

Distressed sales are continuing to make it difficult to appraise non-distressed properties, according to the Campbell/Inside Mortgage Finance Survey.