Foreclosure Sales Accounted for 31 Percent of First Quarter Sales

June 30, 2010 No Comments »

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A total of 232,959 properties in some stage of foreclosure (default, auction, REO) were sold to third parties in the first quarter, a 14 percent decline from the previous quarter, RealtyTrac said today.

The numbers were off 33 percent from the peak seen in the first quarter of 2009, when foreclosure properties accounted for 37 percent of all residential sales.

Foreclosure properties sold at nearly a 27 percent discount compared to the average sales price of properties not in the foreclosure process.

Discounts have been greater on REOs than pre-foreclosures, but the gap seems to be narrowing thanks to an increase in short sales.

REOs sold for an average discount of 34 percent during the quarter, while pre-foreclosures sold for roughly 15 percent off.

First time homebuyers and investors continue to buy foreclosure properties in large numbers, and at substantial discounts,” said James J. Saccacio, chief executive officer of RealtyTrac, in a press release.

“As lenders have begun repossessing homes at record levels over the first half of 2010, it will be interesting to watch how they will manage the inventory levels of distressed properties on the market in order to prevent more dramatic price deterioration.”

Foreclosure sales accounted for 64 percent of all sales in Nevada during the first quarter, though they accounted for 75 percent of sales a year ago.

California posted the second highest share, with 51 percent of all transactions foreclosure sales, followed by Arizona with a 50 percent share.

From 2005 to 2009, foreclosures sales increased a whopping 2,500 percent…

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