Foreclosure Resales Boost Existing Home Sales

“Foreclosures and short sales appear to be a larger part of the market, particularly in California, and are creating a drag on current home prices,” said NAR chief economist Lawrence Yun.

While a drag on prices, distressed real estate also appears to be spurring a growing number of sales transactions in a side of the market that has historically been so small relative to so-called “retail sales” that it has rarely, if ever, put a dent into the national housing picture. But the current market is, if anything, unusual.