Foreclosures Represent 1/4 of Real Estate Sales
Foreclosures Accounted for 25 Percent of Q3 Sales
Homes in some stage of foreclosure accounted for 25 percent of all U.S. residential home sales in the third quarter of 2010, and the average sale price of these homes was more than 32 percent below the average sale price of properties not in the foreclosure process, RealtyTrac reports. A total of 188,748 U.S. properties that were in some stage of foreclosure sold to third parties in the third quarter, down 25 percent from the previous quarter 31 percent below the third quarter of 2009.
A total of 113,933 bank-owned properties were sold in the third quarter, a drop of 26 percent from the previous quarter and 35 percent from a year ago. REO sales accounted for 15 percent of all sales in the third quarter. The number of pre-foreclosure properties — those in default or scheduled for auction — also fell 24 percent in the third quarter. A total of 74,815 pre-foreclosure properties were sold during the quarter, which accounted for 10 percent of all residential sales.
Nevada, Arizona and California posted the highest percentage of foreclosure sales with 54 percent, 47 percent and 40 percent, respectively, even though foreclosure sales were down in all three states compared to the previous quarter and to a year ago.
RealtyTrac CEO James J. Saccacio, attributes the decline in foreclosure sales to a dip in buyer demand after the expiration of the first-time homebuyer tax credit and to well-publicized problems with foreclosure transaction processing, which might have scared off potential buyers. “The foreclosure-processing controversy, which was brought to light at the very end of the third quarter, could chill demand even further — particularly for foreclosure properties. A quick but responsible resolution to that issue would be ideal to help the market continue to properly clear out foreclosure inventory and get distressed properties into the hands of qualified buyers and investors who will likely add value to those properties and the neighborhoods they are in,” Saccacio says. THU, DEC 2, 2010