Foreclosures Account for 24 Percent of Q2 Residential Sales

by bkrigbaum@solagroup.com





IRVINE,
Calif. —
RealtyTrac
(www.realtytrac.com),
the leading online
marketplace for foreclosure properties, released
its Q2 2010 U.S.
Foreclosure Sales Report, which shows that foreclosure homes accounted
for 24
percent of all residential sales in the second quarter of 2010 and that
the
average sales price of properties that sold while in some stage of
foreclosure
was more than 26 percent below the average sales price of properties
not in the
foreclosure process — down slightly from a 27 percent average
discount in the
first quarter.

A
total of 248,534 U.S. properties in some stage of foreclosure
— default,
scheduled for auction or bank-owned (REO) — sold to third
parties in the second
quarter, an increase of nearly 5 percent from the previous quarter, but
still
down 20 percent from the second quarter of 2009.

“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.
“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.”
 

Foreclosure
sales by type in second quarter

A
total of 151,290 bank-owned (REO) properties sold to third parties in
the
second quarter, up 3 percent from the previous quarter but down 28
percent from
the second quarter of 2009. REO sales accounted for nearly 15 percent
of all
sales in the second quarter, down from nearly 19 percent of all sales
in the
previous quarter and down from nearly 20 percent of sales in the second
quarter
of 2009. REOs sold for an average discount of nearly 35 percent, close
to the
average discount of 34 percent in the previous quarter and also to the
average
discount of just over 35 percent in the second quarter of 2009.

A
total of 97,244 pre-foreclosure properties — in default or
scheduled for
auction — sold to third parties in the second quarter, up
nearly 8 percent from
the previous quarter but down 3 percent from the second quarter of
2009.
Pre-foreclosure sales accounted for 9 percent of all sales, down from
nearly 12
percent of all sales in the previous quarter but nearly identical to
the 9
percent of all sales in the second quarter of 2009. Pre-foreclosure
sales,
which are often short sales, sold for an average discount of nearly 13
percent,
down from an average discount of nearly 16 percent in the previous
quarter and
down from an average discount of 19 percent in the second quarter of
2009. 

Nevada,
Arizona, California post highest percentage of foreclosure sales in Q2

Foreclosure
sales accounted for nearly 56 percent of all sales in Nevada in the
second
quarter, the highest percentage of any state despite a decrease in
foreclosure
sales from the previous quarter and from the second quarter of 2009.
Nevada
pre-foreclosure sales jumped 29 percent from the previous quarter and
were up 2
percent from the second quarter of 2009, but Nevada REO sales decreased
14
percent from the previous quarter and were down 43 percent from the
second
quarter of 2009.

Arizona
foreclosure sales accounted for 47 percent of all sales in second
quarter, the
second highest percentage of any state. Pre-foreclosure sales in
Arizona increased
9 percent from the previous quarter and 15 percent from the second
quarter of
2009 while REO sales increased 15 percent from the previous quarter but
were
down nearly 34 percent from the second quarter of 2009.

Foreclosure
sales accounted for 43 percent of all sales in California in the second
quarter, the third highest percentage among the states. California
pre-foreclosure sales increased nearly 8 percent from the previous
quarter but
were down 4 percent from the second quarter of 2009. California REO
sales
increased 1 percent from the previous quarter but were down 45 percent
from the
second quarter of 2009. 

Other
states where foreclosure sales accounted for at least one-quarter of
all sales
were Rhode Island (37 percent), Massachusetts (35 percent), Florida (34
percent), Michigan (33 percent), Georgia (27 percent), Idaho (27
percent), and
Oregon (25 percent).

Ohio,
Kentucky, California post highest foreclosure discounts

Ohio
foreclosures sold for an average discount of nearly 43 percent in the
second
quarter, the biggest discount of any state. Ohio pre-foreclosures sold
for an
average discount of nearly 24 percent while the average discount on
Ohio REOs
was double that at nearly 48 percent. 

With
foreclosures selling at an average price that was 41 percent below the
average
sales price of non-foreclosure properties, Kentucky posted the
nation’s second
highest average foreclosure discount in the second quarter. Kentucky
pre-foreclosure sold for an average discount of 27 percent, and
Kentucky REOs
sold for an average discount of 48 percent.

California
foreclosures sold for an average discount of 39 percent in the second
quarter,
the third-highest discount among the states. California
pre-foreclosures sold
for an average discount of 29 percent and California REOs sold for an
average
discount of 46 percent.

Other
states with average foreclosure discounts of more than 35 percent were
Michigan, Tennessee, Pennsylvania, Georgia, Illinois and Iowa, along
with the
District of Columbia.


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