More homebuyers are choosing to buy a home while it is in the foreclosure process instead of buying a house that has already been foreclosed on and is owned by the lender, a new report shows.
Foreclosures nationally accounted for 19 percent of all home sales during the third quarter - down from 20 percent in the second quarter but flat when compared to the same time last year, according to data released Thursday by RealtyTrac, a California-based real estate analytics firm.
For the first time in recent years, however, sales of properties in some stage of foreclosure outnumbered sales of foreclosed and bank-owned properties during the third quarter, according to RealtyTrac.
Roughly 98,125 U.S.homes sold while they were in the foreclosure process versus 94,934 foreclosed homes owned by banks.
"...Both lenders and at-risk homeowners are realizing that short sales are often a better alternative than foreclosure," said Daren Blomquist, RealtyTrac vice president. Short sales are those where the sales price is below the outstanding mortgage.
The average sales price of a home in the foreclosure process was $191,025, down 5 percent from last year and nearly one-third less than the average sales price of a non-foreclosed home.
Foreclosed homes owned by banks sold for an average $162,000 during the third quarter, up 7 percent from the same time last year.
Recent reports show the housing market, both nationally and locally, is improving. Foreclosures continue to drag down the recovery but in the Charlotte area are accounting for proportionately fewer sales.
Some stats:
The U.S.: 193,059 foreclosure sales in the third quarter (this includes homes sold while in the foreclosure process and those already taken over by a lender) - down 3 percent from the same time last year. The distressed sales account for nearly 20 percent of all U.S. home sales.
Distressed homes sold for an average $177,430, or a 30 percent discount to the average sales price of a non-distressed home.
North Carolina: 3,235 foreclosure sales in the third quarter - up 40 percent from the same time last year. The distressed sales account for 10 percent of all N.C. sales and reported an average sales price of $134,826, a 32 percent discount to the average sales price of a non-distressed home.
South Carolina: 2,076 foreclosure sales in the third quarter - up 20 percent from the same time last year. The distressed sales account for 14 percent of all sales and had an average sales price of $131,259, a 30 percent discount to the average sales price of a non-distressed home.
To see the report go to www.realtytrac.com/content/foreclosure-market-report/q3-2012-foreclosure-sales-and-short-sales-market-report-7499
Thursday, December 6, 2012
More home buyers choosing short sales
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3 comments:
One factor behind the recent interest in the short sales may be that the tax break for those losses may be taken away early next year.
That tax break is part of the package up for renewal. Many people are rushing in to get that break while it is still guaranteed to be on the books.
I'm not sure how real estate experts could miss that connection.
Most real estate experts, if they also know anything about politics, understand that all this talk from GOP politicians about closing loopholes and exemptions is totally bogus. They will never vote to close loopholes that their constituencies put in the tax code in the first place. That's the harsh reality of it.
The Real Estate lobby is one of the most powerful in Washington and they pretty much always get their way. This time, in spite of all the heated rhetoric, will likely be no different.
The real estate lobby hasn't gotten their way in over 5 years. Do you think they pushed for Dodd-Frank? The real estate lobby is a big reason we are where we are today....still TENS OF THOUSANDS of foreclosures and TENS OF THOUSANDS of short sales. Real estate crash far from over with HUNDREDS OF THOUSANDS underwater on their home, and will still be underwater in 10+ years....or the day they die.
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