Glut of Foreclosures To Keep House Prices Low

Washington, DC, Dec. 21, 2011 -- Approximately 46% of homes sold in November were either short sales or repossessions, according to a survey by Campbell/Inside Mortgage Finance released Tuesday.

The firm said that the huge glut of distressed properties coming to market is why there will be no home price rebound in 2012 and maybe into 2013.

Distressed homes sell for a lot less than homes sold by conventional sellers. The average price for a short sale was $209,000 in November. For a regular sale, the average is about $259,000.

The numbers are even worse for repossessions, which averaged about $190,000 for properties in move-in condition.