Pre-foreclosure sales increase from 2011, nearly match record level in 2010
Third parties purchased a total of 449,873 pre-foreclosure residential properties -- in default or scheduled for auction -- in 2012, up 6 percent from 2011 and just 1 percent below the 2010 total of 454,111 pre-foreclosure sales -- the highest annual total since RealtyTrac began tracking in 2005.
Pre-foreclosure sales in 2012 increased annually in 28 states and outnumbered REO sales in 12 states, including Arizona, California, Colorado, Florida, Maryland, New Jersey and New York. Pre-foreclosure sales hit record annual highs in nine states, including California, Georgia, Illinois, Ohio and Texas.
In the fourth quarter of 2012, pre-foreclosure properties sold for an average price of $190,031, up 2 percent from the previous quarter and up 2 percent from the fourth quarter of 2011. The average price of a pre-foreclosure residential property in the fourth quarter was 23 percent below the average price of a non-foreclosure residential property, down from a 26 percent discount in the third quarter but up from a 17 percent discount in the fourth quarter of 2011.
Pre-foreclosure homes that sold in the fourth quarter took an average of 336 days to sell after starting the foreclosure process, down from an average of 359 days in the previous quarter but still up from an average of 308 days in the fourth quarter of 2011.
REO sales decrease nationwide but increase in 26 states
Third parties purchased a total of 498,122 bank-owned (REO) residential properties in 2012, down 15 percent from 2011 and down 19 percent from 2010. REO sales accounted for 11 percent of all residential sales during the year, down from 13 percent in 2011 and 16 percent in 2010.
Despite the decrease nationwide, REO sales in 2012 increased from 2011 in 26 states, including Illinois (19 percent increase), Pennsylvania (12 percent increase), Massachusetts (12 percent increase), Texas (11 percent increase), and Wisconsin (10 percent increase).
In the fourth quarter of 2012, REO properties sold for an average price of $151,998, up 1 percent from the previous quarter and up 3 percent from the fourth quarter of 2011. The average price of an REO residential property in the fourth quarter was 39 percent below the average price of a non-foreclosure residential property, down from a 40 percent discount in the third quarter but up from a 34 percent discount in the fourth quarter of 2011.
REOs that sold in the fourth quarter took an average of 178 days to sell after being foreclosed, down from 186 days in the third quarter but up slightly from 175 days in the fourth quarter of 2011.
Non-foreclosure short sales accelerate in second half of 2012
Short sales (where the sales price was below the estimated amount of all outstanding loans for a given property) of properties not in foreclosure accounted for an estimated 22 percent of all U.S. residential sales in 2012 and increased 4 percent from 2011.
Most Popular Stories
- Accenture Gets 8 Percent Bump in Q1
- Lockheed Martin Ends Gifts to Boy Scouts Over Gay Ban
- Texting With Vodka: Booze and Social Media Can Mix After All
- Menendez Pushes for Iran Sanctions
- Stripped-Down Defense Bill Creates Winners, Losers
- Mazda Leads the Pack for Fuel Efficiency
- Debt Ceiling Looms Again as Deadline Approaches
- How to Protect Yourself After Target Data Breach
- Deportation Threat Looms Larger Than Citizenship Among Hispanics
- Baucus May Be Next China Ambassador