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Tight supply boosts short sale, REO prices

RealtyTrac: Rise in foreclosures may ease inventory shortages

Foreclosure-related sales accounted for 23 percent of all U.S. home sales in the second quarter, up from 19 percent in second-quarter 2011, according to a report released today from foreclosure data aggregator RealtyTrac. In terms of raw numbers, however, foreclosure-related sales -- those either in the foreclosure process or bank-owned -- fell 22 percent year over year, to 224,429, representing the first annual decrease in foreclosure-related sales since fourth-quarter 2010.For the first time in two years, the average price of a foreclosure-related property saw an annual increase in the second quarter: up 7 percent to $170,040. That's also the biggest year-over-year jump since fourth-quarter 2006. The increase reflects tight inventory and rising prices for overall homes nationwide; the median price of an existing home rose annually for the fifth straight month in July, according to the National Association of Realtors."The second quarter sales numbers provide soli...