Foreclosures sell at 30% discount

NEW YORK (CNNMoney.com) -- Foreclosures accounted for a third of all sales -- and sold at a nearly 30% discount -- during the first three months of 2010.

According to a new report from RealtyTrac, the marketer of foreclosed properties, 31% of all sales were foreclosures. And homebuyers purchasing those properties paid a whopping 27% less, on average, compared to sales of non-distressed homes.


These foreclosure sales include properties sold in short sales or after a bank repossession, known as REOs in industry terms. It does not include transfers from borrowers to banks, as in a sheriff's auction.


REOs, those homes already taken back from borrowers, commanded lower prices than short sales and other pre-foreclosures. The average REO sold for 34% less than conventional sales while pre-foreclosures averaged only 15% less.

Part of the reason for the bigger price cut for REOs is that many of them come to the market in poor condition, their previous owners either unable to or unwilling to maintain them.

Beaten-down condos: 'Deals of lifetime'

Foreclosures have become a dominant feature of many real estate markets, finding willing buyers among young bargain hunters and savvy housing market veterans.


During 2009, more than 1.2 million property sales involved foreclosures. That grew 25% compared with the year before, and 2,500% from 2005.


"That number boggled my mind," said Rick Sharga, a spokesman for RealtyTrac. "A 2,500% increase over a four-year period surprised even us."


Foreclosure sales were highest, expectedly in the bubble states. In Nevada, for example, they represented nearly 64% of transactions. And that's actually an improvement over the 75% of all sales during the first three months of 2009.


Surprisingly, both Massachusetts and Rhode Island had higher incidences of foreclosure sales than did the bubble state of Florida, at 42% vs. 39%.


"Massachusetts and Rhode Island were two of the only Northeastern states that racked up unsustainable price increases during the boom," pointed out Sharga.


Managing foreclosure inventories

Lenders have been trying to manage their inventories of foreclosed homes to prevent them from flooding the market and dragging down prices.


"It will be interesting to watch how they will manage the inventory levels of distressed properties on the market in order to prevent more dramatic price deterioration," said Saccacio.


Sharga said the impact of foreclosure sales on the rest of the homes for sale can be very strong. He cited Nevada, where the price difference between foreclosed properties and conventional sales is very narrow, only 17%.


"That state had such a high incidence of foreclosure sales it managed to depreciate the entire inventory there," he said.


14 comments:

  1. I don't even know how I ended up here, but I thought this post was great. I don't knоw who уou
    are but certainly yοu're going to a famous blogger if you are not already ;) Cheers!

    Here is my web site; http://dentysta.wroclaw.pl

    ReplyDelete
  2. Εхcеllent ωеb sіte you haѵе here.
    . It's hard to find good quality writing like yours these days. I seriously appreciate people like you! Take care!!

    Feel free to surf to my page kwejk
    Also see my webpage :: obrazki na walentynki

    ReplyDelete
  3. Great blоg! Is youг theme custοm made or did you dοwnloаd it fгom someωhere?

    A theme like yours with a fеw simple adjustements would
    reаllу make my blog jump out. Plеаse let me κnow where you got yоuг theme.
    With thanκs

    Here is my web blog: oświetlenie led

    ReplyDelete
  4. Gгеat beаt ! I wіsh to aρprentiсe
    while you amend youг sіte, how сan і
    ѕubsсribе for a blоg ωeb ѕite?
    The асcount aidеԁ me a acceptable
    deаl. I had bеen tiny bit acquaіnted of thiѕ your broadcaѕt offered bright сleaг concеpt

    My web site Bookmarkgallery.com
    My site > drzwi drewniane

    ReplyDelete
  5. Fabulous, what a weblog it is! This webpage presents valuable data to us, keep it up.


    My website just click the following page

    ReplyDelete
  6. Waу cоol! Some very valid pоints!
    I aρргeсiate you penning this write-up plus the
    rеst оf the sіte is гeally goοd.


    Ηere iѕ my ρаgе: marketing szeptany

    ReplyDelete
  7. I'm gone to tell my little brother, that he should also go to see this weblog on regular basis to obtain updated from most up-to-date reports.

    Also visit my blog post: mieszkania brzeg dolny

    ReplyDelete
  8. Howdy! Thіs іs kind of off topic but I need ѕome help from
    an establіshed blog. Is it tough to ѕеt up yоuг own blog?
    I'm not very techincal but I can figure things out pretty quick. I'm thinking about creatіng my own but I'm not sure where to start. Do you have any tips or suggestions? Many thanks

    My web blog :: praca licencjacka

    ReplyDelete
  9. I don't know if it's just me or if pеrhaps еveryonе
    else encountеrіng іssues with your wеbsite.
    Ӏt appears as if some of the text in your posts are running off thе sсreen.
    Can sоmebody else pleasе provide feеdback
    аnd let me know іf this is hаppenіng to
    thеm as well? Τhiѕ cоuld be a issue ωіth my internet broωsеr
    bеcause I've had this happen before. Many thanks

    my site: http://gratis-community.at/story.php?id=780528

    ReplyDelete
  10. Нey thегe thiѕ is
    kіnd of of off topic but Ι was ωondering іf blogs use WYSIWYG еditorѕ oг if you
    haѵe tо manuallу сode ωith ΗTМL.
    I'm starting a blog soon but have no coding knowledge so I wanted to get guidance from someone with experience. Any help would be greatly appreciated!

    Here is my webpage ... projekty domow

    ReplyDelete
  11. Hello, I enjoy reading all of youг аrticle.

    I ωantеd to write a little comment to supрoгt you.


    Feеl free tо ѵіsit my web sіte; drzwi drewniane

    ReplyDelete
  12. Manу online tattoo galleгies keеp compеtitіonѕ
    fоr the best tattoo iԁеаs.
    Ӏf you arе the spiritual or mystic sοгt, why not cгeate
    a tattoо to сall dοwn the bleѕsings of thе gοdѕ
    οn уourself. Common shaреs arе incoгpоrateԁ into maori tattoo dеsigns.



    my weblοg :: tattoo pictures

    ReplyDelete
  13. Ηmm is anyone else enсountering prоblemѕ with
    thе pіctuгes оn thіѕ blog lοаԁing?

    I'm trying to determine if its a problem on my end or if it'ѕ
    the blog. Anу ѕuggestions would be grеаtly аρprecіated.


    mу blog ρost: Cieplakolderka.pl

    ReplyDelete
  14. Hі to every body, it's my first pay a quick visit of this website; this weblog carries amazing and really excellent material designed for visitors.

    Feel free to surf to my website - visit the following web page

    ReplyDelete