The foreclosure listing firm RealtyTrac Inc. said in a recent report that home foreclosures accounted for 31 percent of the market in the second quarter of 2011. The good news was that this was a smaller share of sales when compared to the previous quarter. Unfortunately this percentage of home foreclosure sales is approximately six times the amount that would be seen in a normal housing market!
Many insiders speculate that the number of home foreclosures in the second quarter of 2011 would even have been greater than the 31% stated in this report if it were not for the Robo-signing investigations initiated by federal and state departments into how banks were actually processing the paperwork on home foreclosures. These investigations caused many banks to put into effect self imposed moratoriums on further home foreclosures until the practices could be investigated and cleared up.
265,087 homes in some stage of foreclosure or owned by banks were sold in the second quarter, down 11 percent 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.
RealtyTrac Inc said in this report, that sales of homes in the foreclosure process or short sales went for 21 percent less than the average home sold. This foreclosure price discount was actually up when compared to the first quarter of 2011. During the first quarter of 2011 RealtyTrac Inc reported that the average home in foreclosure sold for approximately 17% below comparable homes. Today’s reported 21% discount for the average foreclosure home sale is up by 7% when compared to similar discounts on home foreclosure sales that occurred one year ago in the second quarter of 2010.
The average sales price on a home foreclosure was down less than 1 percent from the January-March quarter and nearly 5 percent from the April-June quarter in 2010.
The state with the most home foreclosure sales, actually accounting for 65% of all of them was Nevada. For another aspect of this, view my post on California homeowners living payment free.
The state with the highest percentage of home foreclosure sales as compared to regular home sales, was Arizona. Today’s report showed that Arizona foreclosure sales represented 57 percent of all home sales for the quarter, up 16 percent from a year ago.
In California, foreclosure sales accounted for 51 percent of all home sales in the second quarter, virtually unchanged from last year.