Non-ForeclosureShort Sales Increase 4 Percent, Account for 22 Percent of allSales
Pre-Foreclosure Sales Increase 6Percent Annually, REO Sales Down 15Percent
IRVINE, Calif. – Feb. 28,2013 — RealtyTrac® (www.realtytrac.com), theleading online marketplace for foreclosure properties, today released itsYear-End and Q4 2012 U.S. Foreclosure & Short Sales Report™, whichshows a total of 947,995 U.S. properties in some stage of foreclosure or bank-owned(REO) were sold during the year, a decrease of 6 percent from 2011and down 11 percent from 2010.
These foreclosure-related salesaccounted for 21 percent of all U.S. residential sales during the year, downfrom 23 percent of all sales in 2011 and down from 28 percent of all sales in2010.
Properties not in foreclosure that sold as short salesin 2012 accounted for an estimated 22 percent of all residential sales –bringing the total share of distressed sales to 43 percent including both foreclosure-relatedsales and non-foreclosure short sales.
Otherhigh-level findings from thereport:
- U.S. pre-foreclosure salesin 2012 increased 6 percent from the previous year while sales of bank-ownedhomes (REO) decreased 15 percent.
- Pre-foreclosure sales in2012 increased from the previous year in 28 states and outnumbered REO sales in12 states, including Arizona, California, Colorado, Florida, Maryland, NewJersey and New York.
- Despite thedecrease nationwide, REO sales in 2012 increased from the previous year in 26states and still outnumbered pre-foreclosure sales in 38 states, includingGeorgia, Illinois, Indiana, Massachusetts, Michigan, Minnesota and Nevada.
- In the fourth quarter of2012, residential properties in foreclosure or bank-owned sold for an averageprice of $171,704, an increase of 2 percent from the third quarter and anincrease of 4 percent from the fourth quarter of 2011.
- Non-foreclosure short sales in 2012 sold short of the loan amount by an averageof $81,621, down from an average of $87,809 short in 2011.
- Non-foreclosure shortsales accelerated toward the end of the year, with the fourth quarter total thehighest quarterly total of the year and up 17 percent from the fourth quarterof 2011.
- In the fourth quarter of2012, a total of 219,084 U.S. properties in some stage of foreclosure orbank-owned sold nationwide, down 10 percent from the previous quarter and down1 percent from the fourth quarter of 2011.
“Although foreclosure-related salesrepresent a shrinking share of total sales, primarily because of fewerbank-owned purchases, distressed sales are still a disproportionately highportion of the overall housing market,” said Daren Blomquist, vice president ofRealtyTrac. “And while distressed properties — whether bank-owned,pre-foreclosure or short sales not in foreclosure — are still selling at asignificant discount compared to non-distressed properties, average distressedproperty prices are increasing in many markets thanks to strong demand andlimited inventory.”
Pre-foreclosuresales increase from 2011, nearly match record level in 2010
Thirdparties purchased a total of 449,873 pre-foreclosure residential properties –in default or scheduledfor auction — in 2012, up 6 percent from 2011 and just 1 percentbelow the 2010 total of 454,111 pre-foreclosure sales — the highest annualtotal since RealtyTrac began tracking in2005.
Pre-foreclosure sales in 2012 increased annually in 28states and outnumbered REO sales in 12 states, including Arizona, California,Colorado, Florida, Maryland, New Jersey and New York. Pre-foreclosure sales hitrecord annual highs in nine states, including California, Georgia, Illinois,Ohio and Texas.
In the fourth quarter of 2012, pre-foreclosureproperties sold for an average price of $190,031, up 2 percent from theprevious quarter and up 2 percent from the fourth quarter of 2011. The averageprice of a pre-foreclosure residential property in the fourth quarter was 23percent below the average price of a non-foreclosure residential property, downfrom a 26 percent discount in the third quarter but up from a 17 percentdiscount in the fourth quarter of 2011.
Pre-foreclosurehomes that sold in the fourth quarter took an average of 336 days tosell after starting the foreclosure process, down from an average of 359 daysin the previous quarter but still up from an average of 308 days in the fourthquarter of 2011.
REO sales decrease nationwidebut increase in 26 states
Third parties purchased atotal of 498,122 bank-owned (REO) residential properties in 2012, down 15percent from 2011 and down 19 percent from 2010. REOsales accounted for 11 percent of all residential sales during theyear, down from 13 percent in 2011 and 16 percent in2010.
Despite the decrease nationwide, REO sales in 2012 increasedfrom 2011 in 26 states, including Illinois (19 percent increase), Pennsylvania(12 percent increase), Massachusetts (12 percent increase), Texas (11 percentincrease), and Wisconsin (10 percent increase).
In the fourthquarter of 2012, REO properties sold for an average price of $151,998, up 1percent from the previous quarter and up 3 percent from the fourth quarter of2011. The average price of an REO residential property in the fourth quarterwas 39 percent below the average price of a non-foreclosure residentialproperty, down from a 40 percent discount in the third quarter but up from a 34percent discount in the fourth quarter of 2011.
REOs thatsold in the fourth quarter took an average of 178 days to sell after beingforeclosed, down from 186 days in the third quarter but up slightly from 175days in the fourth quarter of 2011.
Non-foreclosure short sales accelerate insecond half of 2012
Short sales (where the sales pricewas below the estimated amount of all outstanding loans for a given property)of properties not in foreclosure accounted for an estimated 22 percent of allU.S. residential sales in 2012 and increased 4 percent from2011.
Some of the states with the biggest increases innon-foreclosure short sales were Nevada (86 percent increase), Wisconsin (45percent increase), Washington (28 percent increase), North Carolina (24 percentincrease), and Illinois (18 percent increase).
Some of thestates with the biggest share of non-foreclosure short sales in 2012 wereMichigan (33 percent), Florida (33 percent), Nevada (33 percent), Maryland (28percent), and Ohio (27 percent).
Non-foreclosure short salesnationwide accelerated throughout the year, increasing from the previous quarterin each quarter. Fourth quarter non-foreclosure short sales increased 2 percentfrom the third quarter and were up 17 percent from the fourth quarter of 2011,reaching a seven-quarter high.
Non-foreclosure short sales in2012 were on average $81,621 “short” of the loan amount owed on the propertybeing sold, down from an average of $87,809 short in 2011. Properties in theforeclosure process that sold as short sales in 2012 were $129,817 “short” ofthe loan amount.
California, Georgia,Nevada post highest percentage of foreclosure sales in2012
Foreclosure sales accounted for more than 38percent of all residential sales in California in 2012, the highest percentageof any state but down from 44 percent of all sales in 2011 and down from 49percent of all sales in 2010. California pre-foreclosure sales in 2012increased 12 percent from 2011 while California REO sales decreased 27 percentover the same time period.
Georgiaforeclosure-related sales increased 12 percent in 2012 compared to2011 and accounted for nearly 38 percent of all residential sales in the stateduring the year. Georgia pre-foreclosure sales in 2012 increased 16 percentfrom 2011 while Georgia REO sales increased 9 percent during the same timeperiod.
Foreclosure-related sales accounted for nearly 38percent of all residential sales in Nevada in 2012 despite a 36 percentdecrease from 2011. Nevada pre-foreclosure sales in 2012 decreased 20 percentfrom 2011 while Nevada REO sales decreased 46 percent during the same timeperiod. Foreclosure-related sales had accounted for 55 percent of all Nevadaresidential sales in 2011 and 60 percent of all Nevada residential sales in 2010.
Otherstates where foreclosure-related sales accounted for at least 20 percent of allresidential sales in 2012 were Arizona (34 percent), Michigan (31 percent),Illinois (27 percent), Florida (25 percent), Colorado (23 percent), Wisconsin(22 percent), and New Hampshire (21percent).
Foreclosure sales in 20 largest metroareas
Foreclosure-related sales accounted for 46percent of all residential sales in the Riverside-San Bernardino-Ontario metroarea in Southern California in 2012, the highest percentage among the nation’s20 largest metropolitan statistical areas in terms ofpopulation.
Other metros where foreclosure-related salesaccounted for at least 30 percent of all residential sales in 2012 were Atlanta(41 percent), Los Angeles (36 percent), Phoenix (34 percent), San Diego (34percent), Detroit (32 percent), San Francisco (31 percent) and Chicago (31percent).
The RealtyTrac U.S. Foreclosure SalesReport is produced by matching national address-level arms-length sales deeddata against RealtyTrac’s foreclosure database of pre-foreclosure (NOD, LIS),auction (NTS, NFS) and bank-owned (REO) properties. A property is considered aforeclosure sale if a sales deed is recorded for the property while it wasactively in some stage of foreclosure or bank-owned. Previous quarterly numbersmay be revised upon the issuance of a new quarterly foreclosure sales reportbecause of new sales deed data received by RealtyTrac. The foreclosure discountis calculated by comparing the percentage difference between the average salesprice of properties not in foreclosure to the average sales price of propertiesin some stage of foreclosure or bank-owned. States without sufficient foreclosuresales data to calculate average prices are not included in the report.
Foreclosure (FC)sale: asale of a property that occurs while the property is actively in some stage offoreclosure (NOD, LIS, NTS, NFS or REO). This includes only sales tothird-party buyers or investors. It does not include property transfers fromthe owner in default to the foreclosing bank or lender.
REO sale: a sale ofa property that occurs while the property is actively bank owned(REO).
Pre-foreclosuresale: a sale of a propertythat occurs while the property is actively in default (NOD, LIS) or scheduledfor foreclosure auction (NTS, NFS).
Pct.of all sales:total number of Foreclosure Sales (or Pre-Foreclosure Sales orREO Sales) as a percentage of all residential sales during the quarter oryear.
Avg. FC sales price:the average sales price of Foreclosure Sales (including bothPre-Foreclosure Sales and REO Sales) during the quarter or year, excludingsales with no sales price.
Avg. FCdiscount: thepercentage difference between the average sales price of foreclosure sales andthe average sales price of non-foreclosure sales during the quarter oryear.
The RealtyTrac U.S.Foreclosure Sales Report is the result of a proprietary evaluation ofinformation compiled by RealtyTrac; the report and any of the information inwhole or in part can only be quoted, copied, published, re-published,distributed and/or re-distributed or used in any manner if the userspecifically references RealtyTrac as the source for said report and/or any ofthe information set forth within thereport.
Detailed and historical foreclosuredata used to create the above report may be purchased through the RealtyTracData Licensing Department at 949.502.8300 Ext. 158. Aggregate data is availableat the state, metro, county and zip code levels dating back to 2005, andaddress-level foreclosure records are also availablehistorically.
RealtyTrac (www.realtytrac.com) is theleading supplier of U.S. real estate data, with more than 1.5 million activedefault, foreclosure auction and bank-ownedproperties, and more than 1 million active for-sale listings on its website,which also provides essential housing information for more than 100 millionhomes nationwide. This information includes property characteristics, taxassessor records, bankruptcy status and sales history, along with 20 categoriesof key housing-related facts provided by RealtyTrac’s wholly-owned subsidiary,Homefacts®.RealtyTrac’s foreclosurereports and other housing data are relied on by the Federal Reserve,U.S. Treasury Department, HUD, numerous state housing and banking departments,investment funds as well as millions of real estate professionals andconsumers, to help evaluate housing trends and make informed decisions aboutreal estate.
Jennifer von Pohlmann
949.502.8300, ext. 268
Data and ReportLicensing: