On The Trend.. Short Sales On The Rise

Posted on Sep 03 in Free Educationby adminPrint

Second-quarter pre-foreclosure sales jumped 19% from the previous quarter, suggesting more banks and distressed borrowers are searching for efficient ways to offload properties near foreclosure, RealtyTrac said.

Third parties acquired 102,407 pre-foreclosures in the second quarter, while 162,680 bank-owned homes were sold in the same period.

Pre-foreclosure sales are generally short sales and properties sold within the foreclosure process.

“The jump in pre-foreclosure sales volume coupled with bigger discounts on pre-foreclosures and a shorter average time to sell pre-foreclosures all point to a housing market that is starting to focus on more efficiently clearing distressed inventory through more streamlined short sales — at least in some areas,” said James Sacchio, CEO of RealtyTrac.

As for who is nabbing up distressed and bank-owned properties, RealtyTrac said third parties acquired 265,087 homes classified as in foreclosure or bank-owned in the second quarter. That is up 6% from the revised first quarter figure and down 11% from the second quarter of last year.

The average sales price for foreclosures or bank-owned properties hit $164,217 in the second quarter, down less than 1% from the first quarter and 5% lower than a year earlier.

The sales price for distressed real estate was 32% below the average sales price of homes not in foreclosure.

States with the largest quarterly increase in pre-foreclosure home sales included Nevada, which experienced a 43% increase; Washington (39%), California (38%); and Texas (34%).

The states with the highest number of foreclosure sales included Nevada, Arizona and California.

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One Comment

• William says:

  September 21, 2011 at 7:18 am

  Much appreciated for the information and share!

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