Five Reasons Housing Market Still Hasn't Recovered Yet
"I do think you're seeing a lot of accounting-driven things in the system" Sharga says. "The banks are deferring losses for longer and longer periods of time."
Short sales are a subset of the larger group known as distressed sales, which refers to transactions involving homeowners who are behind on their mortgages and trying to avoid foreclosure.
Bankers say the effort to complete joint sales has attracted bottom-fishers looking for extreme bargains.
"Maybe if they came up and offered $5,000 more that would make it more of a slam dunk," the MBA's Brinkmann says. "This is more of a case of people offering rock-bottom prices."