By RealtyTrac Staff
Average REO Discount 35 Percent; Foreclosure Discount Drops to 9 Percent
Average Time to Sell at 176 Days for REOs; 228 Days for Pre-Foreclosures
IRVINE, Calif. – May 26, 2011 — RealtyTrac® (http://www.realtytrac.com/gateway_co.asp?accnt=137300), the leading online marketplace for foreclosure properties, today released its Q1 2011 U.S. Foreclosure Sales Report™, which shows that sales of bank-owned homes and those in some stage of foreclosure accounted for 28 percent of all U.S. residential sales in the first quarter of 2011, up slightly from 27 percent of all sales in the fourth quarter of 2010 and the highest percentage of sales since the first quarter of 2010, when 29 percent of all sales were foreclosure sales.
The average sales price of properties in some stage of foreclosure — default, scheduled for auction or bank-owned (REO) — was $168,321, down 1.89 percent from the fourth quarter of 2010 and down 1.46 percent from the first quarter of 2010.
The average sales price of foreclosure properties was nearly 27 percent below the average sales price of properties not in foreclosure, unchanged from the 27 percent foreclosure discount in the fourth quarter and up slightly from the 26 percent foreclosure discount in the first quarter of 2010.
Third parties purchased a total of 158,434 U.S. bank-owned homes and those in some stage of foreclosure during the first quarter, a decrease of 16 percent from a revised fourth quarter total and down 36 percent from a revised Q1 2010 total. Bank-owned properties that sold in the first quarter had been repossessed by the bank an average of 176 days prior to the sale, while properties that sold in the earlier stages of foreclosure in the first quarter were in foreclosure an average of 228 days before selling.
“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, chief executive officer of RealtyTrac. “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.”
Foreclosure sales by type
A total of 107,143 bank-owned (REO) residential properties sold to third parties in the first quarter, down 11 percent from the previous quarter and down nearly 30 percent from the first quarter of 2010. REO sales accounted for nearly 19 percent of all sales in the first quarter, up from 17 percent of all sales in the previous quarter and up from 18 percent of all sales in the first quarter of 2010. REOs sold for an average discount of 35 percent, the same discount as in the previous quarter and up from an average discount of 33 percent in the first quarter of 2010.
A total of 51,291 pre-foreclosure properties — in default or scheduled for auction — sold to third parties in the first quarter, down nearly 26 percent from the previous quarter and down 45 percent from the first quarter of 2010. Pre-foreclosure sales accounted for nearly 9 percent of all sales, down from 10 percent of all sales in the fourth quarter of 2010 and down from 11 percent of all sales in the first quarter of 2010. Pre-foreclosure sales, which are often short sales, sold for an average discount of 9 percent, down from an average discount of 13 percent in the fourth quarter and an average discount of 14 percent in the first quarter of 2010.
Nevada, California, Arizona post highest percentage of foreclosure sales
Foreclosure sales accounted for 53 percent of all residential sales in Nevada during the first quarter, the highest percentage of any state but down from nearly 54 percent of all sales in the previous quarter and down from 59 percent of all sales in the first quarter of 2010. The average foreclosure sales price in Nevada during the first quarter was nearly 18 percent below the average sales price of homes not in foreclosure. Bank-owned properties that sold in the first quarter had been repossessed by the bank an average of 130 days prior to sale, while properties that sold in the earlier stages of foreclosure were in foreclosure an average of 135 days before selling.
California foreclosure sales accounted for 45 percent of all residential sales in the state during the first quarter, up from 43 percent of all sales in the fourth quarter but down from nearly 48 percent of all sales in the first quarter of 2010. The average foreclosure sales price in California was nearly 34 percent below the average sales price of homes not in foreclosure. California bank-owned properties that sold in the first quarter had been repossessed by the bank an average of 164 days prior to sale, while properties that sold in the earlier stages of foreclosure were in foreclosure an average of 156 days before selling.
Foreclosure sales also accounted for 45 percent of all residential sales in Arizona during the first quarter, down from 50 percent of all sales in the previous quarter and down from nearly 47 percent of all sales in the first quarter of 2010. Arizona bank-owned properties that sold in the first quarter had been repossessed by the bank an average of 129 days prior to the sale, while properties that sold in the earlier stages of foreclosure were in foreclosure an average of 176 days before selling.
Other states where foreclosure sales accounted for at least one-quarter of all sales were Idaho (33 percent), Florida (32 percent), Michigan (32 percent), Oregon (32 percent), Virginia (30 percent), Colorado (30 percent), Illinois (29 percent), Georgia (27 percent) and Ohio (25 percent).
Ohio, Illinois, Kentucky post highest foreclosure discounts
Ohio foreclosures sold for an average discount of 41 percent in the first quarter, the biggest discount percentage of any state. Ohio’s average foreclosure discount was down slightly from 42 percent in the previous quarter but up slightly from 40 percent in the first quarter of 2010.
The average foreclosure discount in Illinois was nearly 41 percent in the first quarter, up from an average discount of 38 percent in both the previous quarter and the first quarter of 2010.
Kentucky foreclosures sold for an average discount of 39 percent, down from an average discount of 42 percent in the fourth quarter but up from an average discount of 37 percent in the first quarter of 2010.
Other states with average foreclosure discounts of more than 35 percent were Maryland, Tennessee, Wisconsin, Delaware, Pennsylvania, Oklahoma and Louisiana.
Report methodology
The RealtyTrac U.S. Foreclosure Sales Report is produced by matching national address-level sales deed data against RealtyTrac’s foreclosure database of pre-foreclosure (NOD, LIS), auction (NTS, NFS) and bank-owned (REO) properties. A property is considered a foreclosure sale if a sales deed is recorded for the property while it was actively in some stage of foreclosure or bank-owned. The foreclosure discount is calculated by comparing the percentage difference between the average sales price of properties not in foreclosure to the average sales price of properties in some stage of foreclosure or bank-owned. States without sufficient foreclosure sales data to calculate average prices are not included in the report.
Glossary of Terms
Foreclosure (FC) sale: a sale of a property that occurs while the property is actively in some stage of foreclosure (NOD, LIS, NTS, NFS or REO). This includes only sales to third-party buyers or investors not involved in the foreclosure process. It does not include property transfers from the owner in default to the foreclosing bank or lender.
REO sale: a sale of a property that occurs while the property is actively bank owned (REO).
Pre-foreclosure sale: a sale of a property that occurs while the property is actively in default (NOD, LIS) or scheduled for foreclosure auction (NTS, NFS).
Pct. of all sales: total number of Foreclosure Sales (or Pre-Foreclosure Sales or REO Sales) as a percentage of all residential sales during the quarter or year.
Avg. FC sales price: the average sales price of Foreclosure Sales (or Pre-Foreclosure Sales or REO Sales) during the quarter or year, excluding sales with no sales price.
Avg. FC discount: the percentage difference between the average sales price of foreclosure sales and the average sales price of non-foreclosure sales during the quarter or year.
Avg. REO discount: the percentage difference between the average sales price of REO sales and the average sales price of non-foreclosure sales during the quarter or year.
Avg. pre-foreclosure discount: the percentage difference between the average sales price of pre-foreclosure sales and the average sales price of non-foreclosure sales during the quarter or year.
| Q1 2011 Total Foreclosure (FC) Sales |
|
| |||||
State | # of FC Sales | %? from Q4 10 | %? from Q1 10 | Pct. of All Sales | Avg FC Sales Price | Avg FC Discount% | Avg REO Discount% | Avg Pre-FC Discount% |
U.S. Total | 158,434 | -16.46 | -35.79 | 27.53 | $168,321 | 26.66 | 35.08 | 9.49 |
Alabama | 834 | -18.16 | -14.81 | 20.06 | $135,063 | 20.46 | 22.34 | 9.40 |
Alaska | 134 | -24.29 | -27.96 | 10.90 | $230,840 | 13.83 | 18.55 | 1.28 |
Arizona | 14,274 | -14.05 | -20.66 | 45.19 | $128,289 | 25.34 | 33.16 | 8.40 |
Arkansas | 624 | -23.15 | -26.07 | 17.21 | $112,519 | 25.20 | 28.29 | 16.05 |
California | 44,018 | -12.54 | -28.62 | 45.23 | $247,623 | 33.90 | 41.35 | 20.20 |
Colorado | 4,032 | -28.76 | -20.83 | 29.96 | $176,291 | 29.52 | 35.80 | 21.35 |
Delaware | 246 | -14.29 | -12.14 | 18.54 | $158,077 | 36.18 | 38.20 | 25.10 |
Florida | 25,052 | -13.68 | -31.60 | 32.49 | $116,583 | 27.28 | 35.57 | 14.85 |
Georgia | 3,889 | -47.15 | -59.20 | 27.23 | $117,050 | 32.38 | 36.59 | 26.56 |
Hawaii | 362 | -19.91 | -24.58 | 13.69 | $322,317 | 17.82 | 20.62 | 15.01 |
Idaho | 1,604 | 1.91 | -8.19 | 32.88 | $141,845 | 15.44 | 21.67 | 9.86 |
Illinois | 5,529 | -5.87 | -37.72 | 29.38 | $132,983 | 40.90 | 47.61 | 19.07 |
Indiana | 1,640 | -17.55 | -58.35 | 20.64 | $105,914 | 23.97 | 25.88 | 17.45 |
Iowa | 377 | -21.95 | -26.37 | 6.83 | $97,339 | 29.03 | 31.74 | 17.79 |
Kentucky | 589 | 8.07 | -45.51 | 15.97 | $100,126 | 39.02 | 43.92 | 20.42 |
Louisiana | 497 | 3.76 | -37.17 | 11.85 | $116,201 | 35.86 | 40.95 | 22.34 |
Maryland | 2,443 | 1.75 | -37.23 | 23.00 | $186,712 | 38.81 | 44.93 | 33.89 |
Michigan | 7,164 | -13.85 | -41.10 | 31.94 | $70,358 | 33.96 | 37.00 | 10.94 |
Minnesota | 1,179 | -36.37 | -56.45 | 15.70 | $152,179 | 19.26 | 22.07 | 10.17 |
Missouri | 2,326 | -7.51 | -29.32 | 20.21 | $117,831 | 16.99 | 17.42 | 14.35 |
Montana | 156 | -12.36 | -17.46 | 10.17 | $209,843 | -4.97 | 0.77 | -31.52 |
Nevada | 8,322 | -12.85 | -23.28 | 53.32 | $128,589 | 17.50 | 22.57 | 6.30 |
New Hampshire | 101 | -4.72 | -81.70 | 11.07 | $156,292 | 31.09 | 42.42 | 24.86 |
New Jersey | 1,861 | -19.51 | -47.56 | 15.60 | $227,288 | 34.21 | 44.45 | 22.94 |
New Mexico | 210 | -47.89 | -53.54 | 7.19 | $192,941 | 6.98 | 16.84 | -18.15 |
New York | 1,211 | -33.50 | -60.81 | 6.74 | $288,138 | 31.98 | 53.46 | 19.64 |
North Carolina | 1,745 | -38.14 | -47.85 | 11.60 | $144,553 | 25.57 | 29.30 | 14.27 |
Ohio | 4,495 | -16.96 | -42.78 | 24.59 | $75,397 | 41.14 | 46.81 | 20.84 |
Oklahoma | 653 | -8.93 | -29.33 | 13.57 | $93,013 | 35.96 | 36.79 | 34.50 |
Oregon | 2,133 | -18.74 | -26.85 | 31.71 | $175,957 | 24.37 | 27.67 | 14.43 |
Pennsylvania | 2,282 | -6.97 | -27.42 | 13.79 | $113,884 | 36.00 | 42.81 | 15.94 |
South Carolina | 1,347 | -28.01 | -43.00 | 19.17 | $144,492 | 23.98 | 29.86 | 2.84 |
Tennessee | 2,331 | -17.78 | -51.34 | 19.02 | $100,967 | 38.14 | 38.44 | 34.94 |
Texas | 6,962 | -9.27 | -39.93 | 12.05 | $144,505 | 25.24 | 27.25 | 18.74 |
Utah | 797 | -49.33 | -69.75 | 15.48 | $218,425 | -1.59 | 2.50 | -7.98 |
Virginia | 3,216 | -19.96 | -37.22 | 30.20 | $202,070 | 33.80 | 37.91 | 23.73 |
Washington | 2,122 | -30.47 | -43.77 | 16.03 | $205,824 | 27.02 | 30.23 | 17.33 |
Wisconsin | 1,044 | -28.93 | -47.27 | 18.54 | $104,760 | 38.03 | 46.09 | 19.82 |
Report License
The RealtyTrac U.S. Foreclosure Sales Report is the result of a proprietary evaluation of information compiled by RealtyTrac; the report and any of the information in whole or in part can only be quoted, copied, published, re-published, distributed and/or re-distributed or used in any manner if the user specifically references RealtyTrac as the source for said report and/or any of the information set forth within the report.
About RealtyTrac Inc.
RealtyTrac (http://www.realtytrac.com/) is the leading online marketplace of foreclosure properties, with more than 1.5 million default, auction and bank-owned listings from over 2,200 U.S. counties, along with detailed property, loan and home sales data. Hosting more than 3 million unique monthly visitors, RealtyTrac provides innovative technology solutions and practical education resources to facilitate buying, selling and investing in real estate. RealtyTrac’s foreclosure data has also been used by the Federal Reserve, FBI, U.S. Senate Joint Economic Committee and Banking Committee, U.S. Treasury Department, and numerous state housing and banking departments to help evaluate foreclosure trends and address policy issues related to foreclosures.
Comments