The following is an excerpt from an article written by Carrie Bay for DSNews:
New data released by RealtyTrac Thursday shows that distressed homes – including those in default, scheduled for foreclosure auction, and REO – accounted for 25 percent of all U.S. residential sales in the third quarter.
These properties sold at an average of 32 percent below the price of their non-distressed counterparts. RealtyTrac says that’s the highest distressed-property discount it’s seen since the fourth quarter of 2005.
According to RealtyTrac’s data, the average sales price of homes in the process of foreclosure or bank-owned was $169,523 in Q3, down 2.46 percent from the previous quarter. By comparison, the tracking company says the average sales price of non-distressed properties was $249,721, up 6.42 percent from the second quarter.
RealtyTrac reported that 113,933 REO homes sold to third parties during the July to September period. That’s 26 percent fewer than were sold in the previous quarter and down nearly 35 percent from the third quarter of 2009. REOs sold for an average discount of about 41 percent.
A total of 74,815 pre-foreclosure, typically short sale, transactions were completed in the third quarter, down 24 percent from both the previous quarter and year-ago levels, based on RealtyTrac’s findings. Pre-foreclosure sales went at an average discount of 19 percent.
All in all, 188,748 U.S. properties in default, scheduled for auction, or bank-owned sold to third parties last quarter. RealtyTrac says that figure represents a decrease of 25 percent from the previous quarter and is 31 percent below the third quarter of 2009.
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