During the three months that ended December 31, homes that were either bank-owned or going through the foreclosure process accounted for 24% of all home sales, up from 20% in the previous quarter.
Short sales are starting to become the preferred method for banks to dispose of properties in default. Distressed properties continue to make up a large portion of the sales inventory in many housing markets. In Nevada, they accounted for 56% of all sales during the quarter, the highest percentage of any state. California foreclosure-related sales claimed a 43% share, Georgia 39%, Arizona 38% and Michigan 33%.