More proof has rolled in that foreclosed property sales are making up a steadily growing percentage of the U.S. real estate market.
RealtyTrac, a firm that specializes in tracking foreclosed properties, has reported that foreclosed homes accounted for 24% of home sales in the U.S. in the second quarter of 2010. The firm also reported that the average price for the foreclosed homes that sold was 26% below the average price for a home that was not foreclosed.
RealtyTrac also reported that foreclosed properties made up 55.66% of second quarter home sales in Nevada , 43.19% of home sales in California, and 34.13% of home sales in Florida.
And the firm added that those numbers are only likely to increase.
"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 Saccacio, CEO 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."
REOs are foreclosed properties owned by lenders.