Foreclosures Accounted for 24 Percent of Second Quarter Home Sales

September 30, 2010 No Comments »

foreclosures

A total of 248,534 U.S. properties in some stage of foreclosure sold to third parties during the second quarter, an increase of nearly five percent from the previous quarter, but down 20 percent from the second quarter of 2009, according to RealtyTrac.

“While foreclosure sales increased in the second quarter, non-foreclosure sales increased even more, spurred on by the homebuyer tax credit that expired during the quarter,” said James J. Saccacio, chief executive officer of RealtyTrac, in a release.

“That had the net effect of lowering foreclosure sales as a percentage of total sales during the quarter, but that may be a temporary dip as the removal of the tax credit could drive more buyers back to discounted short sales and REOs.”

Most (150,000+) of the previously foreclosed on homes that were sold to third parties during the quarter were bank owned (REO), meaning they had been taken back by the back before being re-sold.

Another 97,244 were pre-foreclosure properties, meaning those in default or scheduled for auction (or short sales).

REOs accounted for nearly 15 percent of all sales, down from 19 percent a quarter earlier, while pre-foreclosures accounted for nine percent, down from 12 percent.

Foreclosure sales accounted for nearly 56 percent of all sales in Nevada, 47 percent in Arizona, and 43 percent in California during the second quarter.

Foreclosure Discounts Dipped, but Still High

The average sales price of a property sold while in some stage of foreclosure was more than 26 percent below the average sales price of a property not in the foreclosure process.

That was down slightly from the 27 percent average discount seen in the first quarter.

The highest average foreclosure discount was seen in Ohio, where such sales went for 43 percent below traditional sales, followed by Kentucky with a 41 percent average discount.

California foreclosures sold at an average discount of 39 percent, making the Golden State the third best place state to find discounts nationwide.

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