While the sale of homes in some stage of foreclosure declined in the first three months of the year, they accounted for 28 percent of all home sales. According to RealtyTrac Inc., this is a share nearly six times higher than it would be in a healthy housing market.
Foreclosure Sales Hit Highest Share of Overall Sales in a Year
The number of foreclosure sales, which include homes that have been purchased after they received a notice of default or were repossessed by lenders, hit the highest share of overall sales in a year during the first three months of 2011, said foreclosure listing firm RealtyTrac Inc. on Thursday.
This 28-percent share of foreclosures is far above the 5 percent that’s more common in a healthy market.
The reason for the drop in foreclosure sales is that processes have slowed in recent months as banks and courts work out issues with paperwork due to mismanaged mortgages. But there are sure to be more homes to add to the 872,000 that RealtyTrac estimates have already been repossessed but not yet sold.
While the national average of foreclosure sales is high, some states have seen even higher shares of sales. Those with the highest shares include Nevada (53 percent), California (45 percent), Arizona (45 percent), Idaho (33 percent) and Florida (32 percent).
Homes in Foreclosure Selling at 35-Percent Discount
For those who are in the market for foreclosed homes, RealtyTrac says that according to first quarter numbers, buyers have saved an average of 35 percent versus the average price of other types of homes.
While this average is unchanged from the previous quarter, it is up from an average of 30 percent last July.
The report also found that buyers who purchased other homes in the foreclosure process–including short sales–received an average discount of 9 percent. This is down from an average discount of 13 percent in the fourth quarter and an average discount of 14 percent a year ago.
Looking for the biggest discounts? Head to Ohio where foreclosure properties sold for an average of 41 percent less than other types of homes.
