RealtyTrac, based in Denver released its first U.S. Foreclosure Sales Report, which shows that foreclosure (home in some stage of foreclosure) accounted for 31% of all residential sales in the first quarter of 2010, and that the average sales price of properties that sold while in some stage of foreclosure was nearly 27% below the average sales price of properties not in foreclosure.
“First-time home buyers and investors continue to buy foreclosure properties in large numbers, and at substantial discounts,” said James J. Saccacio, chief executive officer of RealtyTrac.
More than 1.2 million U.S. properties in some stage of foreclosure sold in 2009, an increase of 25% from 2008 and an increase of nearly 327% from 2007. Total foreclosures in 2009 were up more than 1,100% from 2006 and up more than 2,500% from 2005. Foreclosures accounted for 29% of all sales in 2009, up from 23% in 2008 and up from 6% in 2007.
Nevada, California and Arizona had the highest percentage of foreclosure sales in the first quarter of 2010. Foreclosures accounted for 64% of all sales in Nevada in the first quarter, the highest percentage of any state.
California posted the second highest percentage, with foreclosures accounting for 51% of all sales there in the first quarter. Arizona had the third highest percentage in the first quarter, with foreclosures accounting for half of all sales. Other states where foreclosures accounted for at least 1/3 of all sales were Florida, Georgia, Idaho, Illinois, Massachusetts, Michigan, Oregon, and Rhode Island.
Kentucky, Illinois and Ohio have the best foreclosure deals. The average sales price of properties that sold while in some stage of foreclosure in the first quarter was 39% below the average sales price of properties not in foreclosure in Kentucky, Illinois and Ohio. The average overall foreclosure discount was at least 35% in California, DC, New Jersey, and Pennsylvania.
The biggest discount on bank-owned properties was in New York, where the average sales price for REOs was 52% below the average sales price for properties not in foreclosure. The biggest discount on pre-foreclosure properties was in Rhode Island, where the average sales price for properties in default or scheduled for auction was 33% below the average sales price for properties not in foreclosure.