In a further sign that the housing market is in the tank, banks have been outselling home builders for the last 18 months, according to a new report from Housing Intelligence, an independent research and analytical firm.
The resale sector is still king. Existing houses account for roughly three out of every four sales. But since January 2009, lenders have been selling a larger percentage of houses than builders, the company, a division of the Hanley-Wood publishing empire, reports.
The new home share of the market has slipped from a high of 20% in November 2006 to just 14% at the beginning of '09. And as of last month, the builder share had declined even further, to just 11%.
The "regular" resale market has slowed too, to a 69.5% share at the end of June. Traditionally, existing homes account for anywhere from 75% to 80% of all transactions.
At the same time, sales of foreclosed properties ("real estate owned" that has been repossessed by lenders) has blossomed to a 19.5% share. In other words, about one of every five home sales in June was by a lender.
