Short Sales Outnumber REO Sales in Third Quarter
By Joel Cone, Staff Writer
More than 193,000 U.S. properties in some stage of foreclosure were sold during the third quarter of 2012, according to RealtyTrac’s Q3 2012 U.S. Foreclosure & Short Sales Report. Bucking past market trends, the scale tipped in favor of short sales completed for the first time, barely outnumbering bank-owned properties (REOs) sold during the quarter.
In all, foreclosure-related sales accounted for 19 percent of all residential sales nationwide during the quarter, a slight decrease from the 20 percent reported for the second quarter, but unchanged from the same quarter last year.
Based on its third quarter findings, RealtyTrac reports:
- Pre-foreclosure sales increased 22 percent on a quarterly basis and 22 percent from the same quarter a year ago.
- REO sales were up 19 percent from the second quarter, but remained 20 percent below the level reported for Q3 2011.
- Homes in foreclosure or bank-owned sold for an average price that was 32 percent below the average price of a home not in foreclosure.
- The average sales price for all short sales — including those that were not in foreclosure and those that were — fell short of total loan amounts by $94,896 per short sale.
- Third parties purchased a total 98,125 pre-foreclosure residential properties (those in default and those scheduled for auction) during the third quarter, an increase of 22 percent from the previous quarter.
- The average price for a pre-foreclosure property in the third quarter fell 3 percent from the second quarter to $191,025.
- Third parties purchased a total 94,934 bank-owned (REO) properties during the quarter, 19 percent more than the number purchased during the second quarter.
- The average price of an REO property dropped 7 percent from the second quarter to $161,954.
- Georgia, California and Arizona posted the highest percentages of foreclosure sales in the nation.
Read the entire Q3 2012 U.S. Foreclosure & Short Sales Report now.
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For additional foreclosure-related news, check out these and other articles in the RealtyTrac newsroom:
Frozen Chicago Foreclosure Activity Thawing
Win the Foreclosure Bidding Wars
Buying Foreclosures with Retirement Funds: 3 Strategies