Learn About Foreclosure Home Sales 2Q 2011 - Foreclosures made up roughly 1/3 of all home sales this spring. While that's a smaller share of sales from the previous quarter, it's six times the%age of foreclosures in a healthy housing market. Foreclosure sales, which include homes purchased after they received a notice of default or that were repossessed by lenders, accounted for 31% of the market in the April-June quarter, foreclosure listing firm RealtyTrac Inc.
The share of the market would likely have been larger this spring if not
for a state and federal investigation into faulty paperwork by banks
and servicers. The probe has led many banks to delay foreclosure sales.
Once that is complete, foreclosures will likely surge later this year.
As a slice of all home purchases, foreclosure sales peak two years ago at 37.4%. In the second quarter, they declined from 36% in the January-March period.
In all, 265,087 homes in some stage of foreclosure or owned by banks were sold in the second quarter, down 11% from the same period a year ago. Sales of all other types of homes also declined, according to RealtyTrac's figures, which differ from other home-sales estimates.
Bank-owned homes, which are sold after being repossessed, accounted for nearly 19% of all sales. That's unchanged from the previous quarter.
Distressed properties, often in need of repair, typically sell at big discounts and weaken prices for neighboring homes.
A bank-owned home this spring sold for 40 less than the average price of other homes, according to RealtyTrac. That's up from 36% in the previous quarter and 34% from the same quarter one year ago.
Sales of homes in the foreclosure process or short sales went for 21% less than the average home sold, the firm said. That's up from an average of 17% in the first quarter and 14% in the second quarter of 2010. A short sale is when the lender agrees to accept less than what is owed on the mortgage.
The average sales price of a foreclosure property was $164,217, down less than 1% from the January-March quarter and nearly 5% from the April-June quarter in 2010, the firm said.
Nevada led all states with foreclosure sales, accounting for 65% of all home sales, RealtyTrac said.
In Arizona, foreclosure sales represented 57% of all home sales for the quarter, up 16% from a year ago. In California, foreclosure sales accounted for 51% of all home sales in the second quarter, virtually unchanged from last year.
Several other states had foreclosure sales that accounted for at least one third of all home sales in the first quarter: Michigan, Colorado, Florida, Illinois and Oregon.