Industry NewsMarkets & Economy

REO, short sales sag

RealtyTrac: Q3 discounts best in 5 years

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

The expiration of the homebuyer tax credit and the robo-signing controversy dented sales of bank-owned and foreclosed homes during the third quarter, but those willing to brave the uncertain environment picked up deals not seen in nearly five years, data aggregator RealtyTrac said.RealtyTrac estimates that sales of bank-owned (REO) homes in July, August and September fell 26 percent compared to the second quarter and were down 35 percent from the same quarter a year ago, to 113,933.That's partly a reflection of the fact that home sales were down across the board -- REO sales still accounted for 15 percent of all sales in the third quarter, the same as the previous quarter and only slightly below the 16 percent market share of a year ago.REOs sold for an average discount of nearly 41 percent, up from an average discount of 34 percent in the previous quarter and 35 percent a year ago, RealtyTrac said.Another 74,815 homes that were in the foreclosure process -- either in default or schedu...