Unfortunately for those concerned that foreclosures are driving
down home values, there doesn't seem to be any slowdown in the glut
of
distressed properties
on the market, according to a new survey.
According to the
latest data from RealtyTrac
, an online marketplace for foreclosed properties, 26 percent of
sales during the first quarter of 2012 were for homes in some stage
of foreclosure. Short sales also hit a three-year high during that
period.
Several states had foreclosure sales rates far exceeding the
national average. More than half of all sales in Nevada -- 56
percent -- were for homes in some stage of foreclosure. In
California and Georgia, nearly half of all home sales in the first
quarter were foreclosures at 47 percent and 46 percent,
respectively.
Foreclosure sales increase, prices decrease
The number of foreclosed homes sold during the first quarter of
2012 represents a 4 percent increase from the previous quarter.
At the same time, the average price of foreclosed properties
dropped 1 percent from the previous quarter. During the first three
months of 2012, foreclosed or bank-owned properties sold for an
average of $161,214. That is 27 percent less than the average price
of homes that were not in foreclosure or banked-owned.
Overall, 21 states saw a quarterly increase in the number of
bank-owned sales. The following states had the largest percentage
increase in these sales for the first quarter of 2012:
- Oregon: 41 percent
- North Carolina: 23 percent
- Ohio: 21 percent
- Florida: 13 percent
- Wisconsin: 13 percent
Short sales up 25 percent from last year
While foreclosures continue to make up a significant portion of
home sales, it appears more homeowners are using pre-foreclosure
sales to avoid bank repossession. Commonly completed as short
sales, these transactions accounted for 12 percent of all home
sales during the first quarter of 2012. That number is up from 9
percent during the first quarter of 2011 and represents a
three-year high for short sales.
Twenty-seven states saw in an increase in short sales and other
pre-foreclosure transactions. The following are the states with the
greatest percentage increase in these sales as compared to the
previous year:
- Wisconsin: 94 percent
- Michigan: 81 percent
- Georgia: 80 percent
- Texas: 46 percent
- Illinois: 46 percent
Homes sold in pre-foreclosure sales had an average price of
$175,461. Although higher than the average price for foreclosure
sales, the average price for short sales lagged 21 percent behind
that for non-foreclosure homes. It also represents the lowest
average quarterly price recorded for short sales since RealtyTrac
first started its reporting in 2005.