Foreclosure Sales Plummet in Third Quarter

December 2, 2010 No Comments »

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During the third quarter, just 25 percent of all residential home sales were foreclosures, according to RealtyTrac.

While that number may seem high (because it is), it’s down 25 percent from the second quarter and 21 percent from the third quarter of 2009.

“The expiration of the homebuyer tax credit in the second quarter created a substantial dip in overall buyer demand in the third quarter,” said James J. Saccacio, chief executive officer of RealtyTrac, in a release.

“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.”

However, the average sales price of properties that sold while in some stage of foreclosure (including short sales) was more than 32 percent below the average sales price of properties not in the foreclosure process, up from the 26 percent discount seen in the second quarter and the 29 percent discount seen a year ago.

The average sales price of properties in foreclosure was $169,523, down 2.46 percent from the second quarter and 0.44 percent from a year ago.

Properties not in foreclosure sold for an average price of $249,721, up 6.42 percent from the previous quarter and 4.36 percent from the third quarter of 2009.

But sales volume of non-foreclosure properties plummeted 29 percent from the second quarter and nearly 31 percent from the third quarter of 2009.

Foreclosure sales accounted for more than half of all home sales in Nevada (54%), followed by Arizona (47%) and California (40%), but all were lower than previous periods.

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