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Foreclosures made up 31 percent of home sales in 2Q 


By DEREK KRAVITZ
AP Real Estate Writer

WASHINGTON (AP) — Foreclosures made up roughly one-third of all home sales this spring. While that’s a smaller share of sales from the previous quarter, it’s six times the percentage of foreclosures in a healthy housing market.

Foreclosure sales, which include homes purchased after they received a notice of default or that were repossessed by lenders, accounted for 31 percent of the market in the April-June quarter, foreclosure listing firm RealtyTrac Inc. reported Thursday.

The share of the market would likely have been larger this spring if not for a state and federal investigation into faulty paperwork by banks and servicers. The probe has led many banks to delay foreclosure sales. Once that is complete, foreclosures will likely surge later this year.

As a slice of all home purchases, foreclosure sales peak two years ago at 37.4 percent. In the second quarter, they declined from 36 percent in the January-March period.

In all, 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.

Bank-owned homes, which are sold after being repossessed, accounted for nearly 19 percent of all sales. That’s unchanged from the previous quarter.

Distressed properties, often in need of repair, typically sell at big discounts and weaken prices for neighboring homes.

A bank-owned home this spring sold for 40 less than the average price of other homes, according to RealtyTrac. That’s up from 36 percent in the previous quarter and 34 percent from the same quarter one year ago.

Sales of homes in the foreclosure process or short sales went for 21 percent less than the average home sold, the firm said. That’s up from an average of 17 percent in the first quarter and 14 percent in the second quarter of 2010. A short sale is when the lender agrees to accept less than what is owed on the mortgage.

The average sales price of a foreclosure property was $164,217, down less than 1 percent from the January-March quarter and nearly 5 percent from the April-June quarter in 2010, the firm said.

Nevada led all states with foreclosure sales, accounting for 65 percent of all home sales, RealtyTrac said.

In 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.

Several other states had foreclosure sales that accounted for at least one third of all home sales in the first quarter: Michigan, Colorado, Florida, Illinois and Oregon.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

One comment

  1. Patrick Newport, US economist for IHS Global Insight recently wrote that over a quarter of ALL mortgages are underwater AND 6.3 MILLION homeowners are either delinquent or in foreclosure.

    Now…take a minute…a good 60 seconds and think about that…

    Now add to your thoughts that the Congressional Budget Office, the Federal Reserve and EVERY economist on the face of this earth has just downgrade the growth of the United States GDP for the next 2 years with the CBO estimating only a 1.3% annual growth rate in 2013 – btw…we need a rate of 5% to do any real recovery for unemployment…

    Now let’s go back to 6.3 MILLION…let’s say best case 20% of those delinquent homeowners find a way to scrape by and dealing with higher property taxes and gas and food prices, and are fortunate enough not to lose their jobs…that means 5.04 MILLION homes are going to be foreclosed upon!

    Over 5 MILLION homes…so what does THAT mean…

    Well…at the height of the real estate bubble…AT ITS HEIGHT…just over 3 million homes were sold – 1.3 of those were newly constructed…AT ITS HEIGHT in 2006.

    “So what’s your point?”

    The housing recovery is by far one of the top 3 National Economic Security issues in this country and our leaders – local, state and national as well as financial MUST ADDRESS THIS ISSUE IMMEDIATELY because housing (shelter) is a BEDROCK issue of our society – right up there with food and water. And it is largely being IGNORED by EVERYONE and until we address this issue THIS COUNTRY IS IN DEEP-SH*T TROUBLE!

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