Once a life boat for struggling homeowners in a sinking housing market, short sales are now on a significant decline, according to a new analysis by CoreLogic.
The report conducted by the market analytics company showed that Palm Beach County had only 83 short sales in February, a whopping 52 percent decline over the same period in 2013, a possible indicator that these types of transactions may be on the way out.
The report credits the drop to rising home equity. About 26 percent of county borrowers have underwater mortgages, down from 43 percent in 2011. On top of that, Congress did not extend the Mortgage Forgiveness Debt Relief Act, which was first used in 2007 to save homeowners thousands on their taxes by exempting forgiven debt as income.
In the South Florida Market, short sales and foreclosure sales have dwindled from 29 percent of overall single family home transactions in 2012 to 23 percent in 2013.