Magazine article American Banker

Foreclosure Homes Are 26% of All Residential Sales

Magazine article American Banker

Foreclosure Homes Are 26% of All Residential Sales

Article excerpt

Byline: Evan Nemeroff

More than a quarter of all national residential sales in the first quarter were either a short sale or bank-owned property, according to RealtyTrac.

Foreclosure-related sales made up 26% of all home sales through the first three months of 2012, up from 22% in the last quarter of 2011 and 25% seen a year ago.

Third parties purchased 233,299 residential properties that were either in default, scheduled for foreclosure auction or REO during the first quarter. This is an 8% increase from the prior quarter.

The average sales price for a home in foreclosure or bank-owned was $161,214 in the first quarter, 27% below the median price for a nonforeclosed property.

Short sales hit a three-year high in 1Q 2012 even as the average preforeclosure sales price dropped to a record low. A total of 109,521 short sales occurred in the first quarter of 2012, 25% more than the same time period last year.

Short sales accounted for 12% of all sales in the first quarter, with the average property selling for $175,461. The median sales price of a short sale home was 21% below a nonforeclosure home.

"Lenders are approving more aggressively priced short sales, which in turn is resulting in more successful short sale transactions," said Brandon Moore, CEO of RealtyTrac.

Preforeclosure sales, which took about 306 days to complete after starting the foreclosure process, increased on an annual basis in 27 states, including Wisconsin, Michigan, Georgia, Texas and Illinois. …

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