Sales of bank-owned homes and properties in the foreclosure process fell 33 percent during the first quarter from their year-ago peak, to 232,959, but accounted for 31 percent of all home sales, according to data aggregator RealtyTrac.
Sales of "real estate-owned" (REO) properties repossessed by lenders at the end of the foreclosure process were down 27 percent from a year ago, to 144,503, RealtyTrac said. REO properties still accounted for 19 percent of all homes sales during the first quarter, up from 16 percent in the final three months of 2009 but down from 21 percent a year ago.
Sales of homes making their way through the foreclosure process but not yet repossessed by lenders fell by nearly 41 percent from a year ago, to 88,456. Those transactions — which were typically short sales — accounted for nearly 12 percent of all home sales, up from 10 percent in the final quarter of 2009 but down from 16 percent a year ago.
REOs sold for an average discount of 34 percent compared to homes that had not been through foreclosure, up from 32 percent a year ago.
The average discount on homes still making their way through the foreclosure process was nearly 15 percent, down from 16 percent a year ago.
"As lenders have begun repossessing homes at record levels over the first half of 2010, it will be interesting to watch how they will manage the inventory levels of distressed properties on the market in order to prevent more dramatic price deterioration," said James J. Saccacio, chief executive officer of RealtyTrac, in a press release.
RealtyTrac collects information from county tax assessors and other sources in order to track homes through the foreclosure process. The company’s reports are closely followed by real estate industry and government analysts for indications of state and market-level foreclosure trends.
Today’s "U.S. Foreclosure Sales Report" marked the first time RealtyTrac has matched addresses from sales deeds data against the company’s database of foreclosed properties to estimate distressed-property market share and the discounts at which those properties are selling.
Discounts were calculated by comparing the percentage difference between the average sales price of properties not in foreclosure to the average sales price of properties in some stage of foreclosure or bank-owned. States without sufficient foreclosure sales data to calculate average prices were not included in the report.
At the state level, the range in market share accounted for by REO properties and homes in foreclosure ranged from a high of 63 percent of sales in Nevada, to a low of less than 8 percent of home sales in Iowa.
The average discount on distressed properties sold in Nevada, 17 percent, was less than the 32 percent discount in Iowa and the national average of nearly 27 percent.
In most states, discounts on REO properties were greater than on sales of properties still in the foreclosure process.
Discounts on REO properties averaged more than 40 percent in California (44 percent), New York (51 percent), Illinois (46 percent), Ohio (45 percent), Kentucky (46 percent), New Hampshire (42 percent), New Jersey (48 percent) and Pennsylvania (44 percent).
Average discounts on homes in the foreclosure process exceeded 20 percent in California (28 percent), Delaware (23 percent), Florida (21 percent), Georgia (22 percent), Indiana (25 percent), Iowa (22 percent), Kentucky (26 percent), Maryland (23 percent), Massachusetts (32 percent), Mississippi (32 percent), Missouri (25 percent), New Jersey (21 percent), Ohio (21 percent), Rhode Island (33 percent), Tennessee (22 percent), Texas (26 percent) and Virginia (20 percent).
|
State |
Percentage of sales |
Average discount |
Average REO discount |
Average discount homes in foreclosure |
|
U.S. Total |
31.04% |
26.70% |
34.04% |
14.77% |
|
Alabama |
17.96% |
15.15% |
16.39% |
7.20% |
|
Alaska |
13.66% |
13.78% |
20.73% |
2.88% |
|
Arizona |
50.29% |
24.82% |
29.48% |
18.10% |
|
Arkansas |
16.90% |
14.04% |
16.04% |
10.05% |
|
California |
50.82% |
37.83% |
43.86% |
28.30% |
|
Colorado |
30.23% |
24.51% |
27.88% |
17.62% |
|
Delaware |
17.02% |
28.53% |
30.04% |
23.28% |
|
Washington, D.C. |
9.73% |
34.87% |
45.55% |
26.02% |
|
Florida |
38.65% |
28.36% |
37.75% |
20.88% |
|
Georgia |
35.36% |
33.20% |
37.91% |
22.47% |
|
Hawaii |
12.29% |
15.33% |
29.61% |
4.76% |
|
Idaho |
33.88% |
7.02% |
14.10% |
4.75% |
|
Illinois |
33.94% |
39.11% |
45.88% |
19.32% |
|
Indiana |
27.05% |
24.79% |
24.56% |
25.36% |
|
Iowa |
7.65% |
31.93% |
33.40% |
21.84% |
|
Kentucky |
18.88% |
39.17% |
45.88% |
26.47% |
|
Louisiana |
13.68% |
25.12% |
27.99% |
16.92% |
|
Maryland |
20.33% |
24.03% |
26.57% |
22.62% |
|
Massachusetts |
42.15% |
33.41% |
36.07% |
32.39% |
|
Michigan |
36.60% |
30.53% |
34.21% |
15.35% |
|
Minnesota |
17.04% |
21.18% |
24.94% |
11.70% |
|
Mississippi |
19.95% |
30.11% |
28.93% |
31.89% |
|
Missouri |
21.78% |
19.69% |
18.09% |
25.37% |
|
Montana |
10.69% |
-2.07% |
2.66% |
-17.25% |
|
Nevada |
63.50% |
16.93% |
19.53% |
10.78% |
|
New Hampshire |
20.47% |
26.44% |
42.45% |
19.63% |
|
New Jersey |
19.30% |
34.64% |
47.78% |
20.83% |
|
New Mexico |
9.33% |
4.84% |
-1.31% |
10.99% |
|
New York |
9.61% |
27.28% |
51.97% |
14.79% |
|
North Carolina |
14.74% |
24.11% |
28.33% |
9.74% |
|
Ohio |
28.94% |
39.47% |
44.56% |
21.14% |
|
Oklahoma |
12.94% |
28.58% |
37.33% |
19.69% |
|
Oregon |
33.55% |
22.10% |
25.73% |
14.75% |
|
Pennsylvania |
15.02% |
36.76% |
44.29% |
16.82% |
|
Rhode Island |
41.64% |
30.46% |
14.78% |
32.75% |
|
South Carolina |
20.95% |
20.60% |
26.83% |
1.07% |
|
Tennessee |
22.77% |
37.42% |
39.29% |
21.63% |
|
Texas |
17.05% |
28.92% |
30.05% |
25.54% |
|
Utah |
23.91% |
-6.09% |
-4.41% |
-8.73% |
|
Virginia |
31.25% |
24.66% |
27.20% |
20.14% |
|
Washington |
18.88% |
24.27% |
29.39% |
12.10% |
|
Wisconsin |
18.67% |
32.44% |
38.28% |
19.51% |
