Foreclosures Account for 28 Percent of First Quarter Home Sales

May 25, 2011 No Comments »

bank owned

So-called “foreclosure homes,” those in some stage of the foreclosure process, accounted for 28 percent of all first quarter home sales, according to RealtyTrac.

The numbers were up slightly from 27 percent in the fourth quarter of 2010, but below the 29 percent share seen a year ago.

Still, it was the highest percentage of foreclosure sales since the first quarter of 2010.

During the quarter, third parties purchased a total of 158,434 bank-owned homes and those in foreclosure, a 16 percent decline from the fourth quarter total and 36 percent lower than the first quarter 2010 total.

Bank-owned properties sold during the first quarter had been repossessed by the bank/mortgage lender an average of 176 days prior to the sale.

Meanwhile, properties that changed hands in the earlier stages of foreclosure, before bank repossession, were in the fateful process an average of 228 days before they sold.

Foreclosures Sell At a Discount

The average sales price for a foreclosure was almost 27 percent below the average sales price for a home not in foreclosure, unchanged from the fourth quarter and up slightly from the 26 percent discount seen a year ago.

Ohio foreclosures sold for an average discount of 41 percent, the largest discount percentage of any state.

Foreclosure sales accounted for 53 percent of sales in Nevada, and 45 percent of both California and Arizona sales.

Of those three states, California was the only one to see its foreclosure-share increase quarter-over-quarter, and all three saw numbers fall from a year ago.

Hope? Or just delays?

Tip: How long does a foreclosure stay on your credit?

Leave A Response