Foreclosed Homes Accounted for 31% of Home Sales Through March
RealtyTrac has reported that almost a third of homes sold nationwide in the first quarter of this year came from homes that were at some point in the foreclosure process.
The firm, which specializes in brokering foreclosed homes and which tracks foreclosure trends also said that the price for those foreclosed properties that sold was 27% less than the price for non-foreclosed homes in the same markets.
"First time home buyers and investors continue to buy foreclosure properties in large numbers, and at substantial discounts," said James J. Saccacio, chief executive officer of RealtyTrac. "As lenders have begun repossessing homes at record levels over the first half of 2010, 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."
The average sales prices on properties in some stage of foreclosure decreased 23%, the firm reported,from 2006 to 2009 while the average discounts on foreclosure purchases steadily increased from 21% in 2006 to 27% in the first quarter of 2010.