Foreclosure Home Housing & Foreclosure Reports Q3 2011 U.S. Foreclosure Sales Report

Q3 Foreclosure Sales Report: Restricted Supply Lowering Foreclosure Sales

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Average  Foreclosure Price Up 1 Percent From Q2, Down 3 Percent From Year Ago
  Average  Foreclosure Price 34 Percent Below Average Price of Non-Foreclosures

IRVINE, Calif. – Jan. 26, 2012 — RealtyTrac® (http://www.realtytrac.com),  the leading online marketplace for foreclosures, today released its Q3 2011  U.S. Foreclosure Sales Report™, which shows that sales of homes that were in  some stage of foreclosure or bank owned accounted for 20 percent of all U.S.  residential sales in the third quarter of 2011, down from 22 percent of all  sales in the second quarter and down from 30 percent of all sales in the third  quarter of 2010.

Third parties purchased a total of 221,536  residential properties in some stage of foreclosure (NOD, LIS, NTS, NFS) or bank-owned  (REO) during the third quarter, down 11 percent from a revised second  quarter total and down 5 percent from the third quarter of 2010.

The average sales price of homes in foreclosure or bank owned was  $165,322 in the third quarter, up 1 percent from the previous quarter but down  3 percent from the third quarter of 2010. The average sales price of these  foreclosure-related sales was 34 percent below the average sales price of homes  not in foreclosure, matching the 34 percent foreclosure discount in the second  quarter but below the 37 percent discount in the third quarter of 2010.

“While foreclosures continue to represent an  excellent bargain-buying opportunity for many buyers and investors, foreclosure  sales accounted for a smaller share of the total market in the third quarter.  That trend is not too surprising given the continued ambiguity surrounding  proper foreclosure procedures — and the ripple effect that has on sales of  foreclosed properties that might have been improperly foreclosed,” said Brandon  Moore, chief executive officer of RealtyTrac. “The sooner the market gets more  clarity about accepted foreclosure procedures, primarily through the  long-promised settlement between multiple states attorneys general and major lenders,  the sooner the market can more efficiently dispose of these distressed  properties.

“Even with the hurdles to selling foreclosures,  foreclosure sales continue to represent a historically high percentage of all  sales,” Moore continued. “In 2005 and 2006, foreclosure sales consistently  accounted for less than 5 percent of all sales nationwide.”

Pre-foreclosure sales flat from year ago, REO sales down
A total of 92,824 pre-foreclosure homes — in  default or scheduled  for auction — sold to third parties in the third quarter, a decrease of 9  percent from the previous quarter and nearly identical to the 92,967  pre-foreclosure sales in the third quarter of 2010. Pre-foreclosure sales  accounted for nearly 9 percent of all sales, the same as in the second quarter,  but down from 12 percent of all sales in the third quarter of 2010.

Pre-foreclosure sales increased more than 30  percent on an annual basis in Michigan (up 68 percent), North Carolina (up 44  percent), Ohio (up 43 percent) and Georgia (up 35 percent). Pre-foreclosure  sales outnumbered REO sales in several states in the third quarter, including  Colorado, Florida, New Jersey and New York.

Pre-foreclosures, which are often sold via short  sale, had an average sales price nationwide of $191,119, a discount of 24  percent below the average sales price of homes not in foreclosure. That was up  from the 23 percent discount in the previous quarter and matched the 24 percent  discount in the third quarter of 2010. Pre-foreclosures that sold in the third  quarter took an average of 318 days to sell after receiving an initial  foreclosure notice, up from an average of 245 days in the second quarter and  average of 236 days in the third quarter of 2010.

A total of 128,712 bank-owned  (REO) homes sold to third parties in the third quarter, down 13 percent  from the second quarter and down nearly 8 percent from the third quarter of 2010.  REO sales accounted for nearly 12 percent of all sales in the third quarter,  down from 13 percent of all sales in the previous quarter and down from nearly 18  percent of all sales in the third quarter of 2010.

Nationally, REOs had an average sales price of $146,437  in the third quarter, a discount of nearly 42 percent below the average sales  price of homes not in foreclosure. That matched a 42 percent discount on REOs in  the second quarter, but was down from a 45 percent discount in the third  quarter of 2010. REOs that sold in the third quarter took an average of 193  days to sell after being foreclosed on, up from 178 days in the second quarter  and 161 days in the third quarter of 2010.

Nevada, California and Arizona post highest percentage of foreclosure  sales
Foreclosure-related sales accounted for nearly 57  percent of all residential  sales in Nevada during the third  quarter, the highest percentage of any state. Third parties purchased a total  of 13,992 homes in foreclosure or bank owned in Nevada during the third  quarter, nearly identical to the 13,858 foreclosure-related sales in the  previous quarter, but up 24 percent from the third quarter of 2010.

Third parties purchased a  total of 62,583 homes in foreclosure or bank owned in California, representing nearly  44 percent of the state’s total residential property sales in the third quarter  — the second highest percentage of any state. Foreclosure-related  sales in California decreased nearly 7 percent from the previous quarter  but were up 7 percent from the third quarter of 2010.

Arizona  foreclosure-related sales accounted for 43 percent of all sales in the  state, the third highest percentage of any state. Third parties purchased a  total of 21,619 homes in foreclosure or bank owned in Arizona during the  quarter, down nearly 14 percent from the previous quarter, but up 19 percent  from the third quarter of 2010.

Other states where foreclosure-related sales  accounted for at least 20 percent of all sales included Georgia (34 percent),  Colorado (26 percent) and Michigan (23 percent).

Due to a nearly 30 percent decrease from the  previous year, Florida foreclosure-related sales in the third quarter accounted  for 19 percent of all sales in the state — down from 39 percent of all sales in  the third quarter of 2010.

Metros with biggest foreclosure discounts
Among metropolitan statistical areas with at least  100 foreclosure-related sales during the third quarter, the Trenton-Ewing,  N.J., metro area posted the biggest foreclosure discount. The average price of  a foreclosure-related sale in the metro area was $108,302, nearly 68 percent  below the average sales price of homes not in foreclosure. Foreclosure-related  sales accounted for 8 percent of all sales in the Trenton-Ewing metro area during  the third quarter.

Foreclosure-related sales accounted for nearly 13  percent of all sales in the St. Louis metro area during the third quarter and  sold at an average price of $80,545, nearly 55 percent below the average price  of non-foreclosure sales in the metro area — the second highest foreclosure  discount among metro areas with at least 100 foreclosure-related sales.

The Milwaukee metro area documented the third  highest foreclosure discount, with an average foreclosure-related sales price  of $93,250 — nearly 53 percent below the average sales price of non-foreclosure  properties. Foreclosure-related sales accounted for 17 percent of all sales in  the Milwaukee metro area in the third quarter.

Other metro areas with a foreclosure discount of at  least 50 percent were Springfield, Mass. (52 percent), Saginaw, Mich. (52  percent), New Haven-Milford, Conn. (51 percent), Memphis (51 percent), San  Francisco (51 percent), Toledo, Ohio (50 percent), Bridgeport-Stamford-Norwalk,  Conn. (50 percent), and Atlanta (50 percent).

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Report methodology
The RealtyTrac U.S. Foreclosure Sales Report is  produced by matching national address-level sales deed data against  RealtyTrac’s foreclosure database of pre-foreclosure (NOD, LIS), auction (NTS,  NFS) and bank-owned (REO) properties. A property is considered a foreclosure  sale if a sales deed is recorded for the property while it was actively in some  stage of foreclosure or bank-owned. The foreclosure discount is calculated by  comparing the percentage difference between the average sales price of  properties not in foreclosure to the average sales price of properties in some  stage of foreclosure or bank-owned. States without sufficient foreclosure sales  data to calculate average prices are not included in the report.

Glossary of Terms
Foreclosure (FC) sale: a sale of a property that occurs while the property  is actively in some stage of foreclosure (NOD, LIS, NTS, NFS or REO). This  includes only sales to third-party buyers or investors not involved in the  foreclosure process. It does not include property transfers from the owner in  default to the foreclosing bank or lender.

REO sale: a sale of a property that occurs while the  property is actively bank owned (REO).

Pre-foreclosure sale: a sale of a property that occurs while  the property is actively in default (NOD, LIS) or scheduled for foreclosure  auction (NTS, NFS).

Pct. of all sales: total number of Foreclosure Sales (or  Pre-Foreclosure Sales or REO Sales) as a percentage of all residential sales  during the quarter or year.

Avg. FC sales price: the average sales price of Foreclosure Sales (or  Pre-Foreclosure Sales or REO Sales) during the quarter or year, excluding sales  with no sales price.

Avg. FC discount: the percentage difference between the average sales  price of foreclosure sales and the average sales price of non-foreclosure sales  during the quarter or year.

Avg. REO discount: the percentage difference between the average sales  price of REO sales and the average sales price of non-foreclosure sales during  the quarter or year.

Avg. pre-foreclosure discount: the percentage difference between the average sales  price of pre-foreclosure sales and the average sales price of non-foreclosure  sales during the quarter or year.

Report License
The RealtyTrac U.S. Foreclosure Sales Report is the  result of a proprietary evaluation of information compiled by RealtyTrac; the  report and any of the information in whole or in part can only be quoted,  copied, published, re-published, distributed and/or re-distributed or used in  any manner if the user specifically references RealtyTrac as the source for  said report and/or any of the information set forth within the report.

Order Customized  Reports
Detailed and historical foreclosure data used to create the above report  may be purchased  through the RealtyTrac  Data Licensing Department at 949.502.8300 Ext. 158. Aggregate data is available  at the state, metro, county and zip code levels dating back to 2005, and  address-level foreclosure records are also available historically.

About RealtyTrac Inc.                                                        
RealtyTrac (http://www.realtytrac.com/) is the leading  online marketplace of foreclosure properties, with more than 1.5 million  default, auction and bank-owned listings from over 2,200 U.S. counties, along  with detailed property, loan and home sales data. Hosting millions of unique  monthly visitors, RealtyTrac provides innovative technology solutions and  practical education resources to facilitate buying, selling and investing in  real estate. RealtyTrac’s foreclosure data has also been used by the Federal  Reserve, FBI, U.S. Senate Joint Economic Committee and Banking Committee, U.S.  Treasury Department, and numerous state housing and banking departments,  private companies and academic institutions to help evaluate foreclosure trends  and address policy issues related to foreclosures.

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Media Contacts:

Jennifer von Pohlmann
949.502.8300, ext. 139
jennifer.vonpohlmann@realtytrac.com  

Order Custom Data:
Data Sales Department
800.913.0439
datasales@realtytrac.com


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