RealtyTrac: Sales of Distressed Properties Total 43% of 2012 Home Sales
The overall number of distressed properties was down in 2012.
IRVINE, Calif—RealtyTrac’s Fourth Quarter and Year End 2012 U.S. Foreclosure and Short Sales Report showed a decrease of six percent from 2011 and decrease of 11 percent from 2010 for foreclosure or bank-owned property sales. A total number of 947,995 U.S. properties was reported to be in some stage of foreclosure or bank-ownership.
Preforeclosure sales increased six percent in 2012, and 28 states – including Arizona, California, Colorado, Florida, Maryland, New Jersey and New York- experienced increases. Despite nationwide decreases, a total of 26 states including Illinois, Pennsylvania, Massachusetts, Texas and Wisconsin experienced increased sales of bank-owned properties over the course of 2012. Nationwide, preforeclosure properties sold for an average price of $190,031, while bank-owned properties were selling for an average price of $151,998 in the fourth quarter of 2012. Both were increases from the previous quarter, and the fourth quarter of 2011.
Non-foreclosure short sales accelerated, increasing each consecutive quarter, nationwide over the course of 2012. The 2012, fourth quarter increase was up 2 percent from the third quarter and 17 percent from the fourth quarter of 2011, reaching a seven-quarter high.
“Distressed properties – whether bank-owned, preforeclosures or short sales not in foreclosure – are selling at a significant discount compared to non-distressed properties,” said Daren Blomquist, vice president of RealtyTrac. “Average distressed property prices are increasing in many markets thanks to strong demand and limited inventory.”
The full report and region-by-region breakdown is available here.
