Foreclosures account for 28% of real estate sales in Q1

Average foreclosure discount is nearly 27%

Foreclosure sales accounted for 28 percent of U.S. home sales in the first quarter, with those properties selling for nearly 27 percent less, on average, than homes not in the foreclosure process, data aggregator RealtyTrac said in a report released today.

A total of 158,434 U.S. residential properties either owned by banks or in some stage of foreclosure sold to third parties in the first quarter, a decrease of 16 percent from fourth-quarter 2010 and a decrease of nearly 36 percent from first-quarter 2010, RealtyTrac said.

Properties in some stage of foreclosure — default, scheduled for auction or bank-owned (REO) — had an average sales price of $168,321, down 1.9 percent from fourth-quarter 2010 and down 1.5 percent from first-quarter 2010, RealtyTrac said. The 27 percent foreclosure discount for the first quarter was unchanged quarter-to-quarter, and up slightly from a 26 percent discount in first-quarter 2010.

"While foreclosure sales continue to account for an unusually high percentage of all residential home sales, sales volume is well off the peak we saw in the first quarter of 2009, when nearly 350,000 foreclosure properties sold to third parties," said James J. Saccacio, RealtyTrac’s CEO, in a statement.

"While this is probably helping to keep home prices relatively stable, it is also delaying the housing recovery. At the first quarter foreclosure sales pace, it would take exactly three years to clear the current inventory of 1.9 million properties already on the banks’ books, or in foreclosure."

A total of 107,143 bank-owned (REO) properties sold to third parties in the first quarter, down nearly 30 percent year-over-year, at an average discount of 35 percent, up from an average discount of 33 percent in first-quarter 2010. REOs comprised nearly 19 percent of all sales last quarter.

Another 51,291 preforeclosure properties — homes in default or scheduled for auction — sold to third parties in the first quarter, down 45 percent year-over-year, at an average discount of 9 percent, down from an average discount of 14 percent in first-quarter 2010. Preforeclosure sales comprised nearly 9 percent of all sales last quarter.

It took an average of 176 days for an REO to sell after it had been repossessed; preforeclosure properties were in the foreclosure process for 228 days on average before selling, RealtyTrac said.

Nevada, California and Arizona had the highest share of foreclosure sales. Ohio, Illinois and Kentucky had the largest foreclosure discounts.

  Q1 2011 Total Foreclosure Sales
State # of FC Sales % ch. from Q1 ’10 Pct. of all sales Avg. price Avg. discount %
U.S. Total 158,434 -35.79 27.53 $168,321 26.66
Alabama 834 -14.81 20.06 $135,063 20.46
Alaska 134 -27.96 10.9 $230,840 13.83
Arizona 14,274 -20.66 45.19 $128,289 25.34
Arkansas 624 -26.07 17.21 $112,519 25.2
California 44,018 -28.62 45.23 $247,623 33.9
Colorado 4,032 -20.83 29.96 $176,291 29.52
Delaware 246 -12.14 18.54 $158,077 36.18
Florida 25,052 -31.6 32.49 $116,583 27.28
Georgia 3,889 -59.2 27.23 $117,050 32.38
Hawaii 362 -24.58 13.69 $322,317 17.82
Idaho 1,604 -8.19 32.88 $141,845 15.44
Illinois 5,529 -37.72 29.38 $132,983 40.9
Indiana 1,640 -58.35 20.64 $105,914 23.97
Iowa 377 -26.37 6.83 $97,339 29.03
Kentucky 589 -45.51 15.97 $100,126 39.02
Louisiana 497 -37.17 11.85 $116,201 35.86
Maryland 2,443 -37.23 23 $186,712 38.81
Michigan 7,164 -41.1 31.94 $70,358 33.96
Minnesota 1,179 -56.45 15.7 $152,179 19.26
Missouri 2,326 -29.32 20.21 $117,831 16.99
Montana 156 -17.46 10.17 $209,843 -4.97
Nevada 8,322 -23.28 53.32 $128,589 17.5
New Hampshire 101 -81.7 11.07 $156,292 31.09
New Jersey 1,861 -47.56 15.6 $227,288 34.21
New Mexico 210 -53.54 7.19 $192,941 6.98
New York 1,211 -60.81 6.74 $288,138 31.98
North Carolina 1,745 -47.85 11.6 $144,553 25.57
Ohio 4,495 -42.78 24.59 $75,397 41.14
Oklahoma 653 -29.33 13.57 $93,013 35.96
Oregon 2,133 -26.85 31.71 $175,957 24.37
Pennsylvania 2,282 -27.42 13.79 $113,884 36
South Carolina 1,347 -43 19.17 $144,492 23.98
Tennessee 2,331 -51.34 19.02 $100,967 38.14
Texas 6,962 -39.93 12.05 $144,505 25.24
Utah 797 -69.75 15.48 $218,425 -1.59
Virginia 3,216 -37.22 30.2 $202,070 33.8
Washington 2,122 -43.77 16.03 $205,824 27.02
Wisconsin 1,044 -47.27 18.54 $104,760 38.03

Source: RealtyTrac

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