Foreclosure Sales Drop, Average Price Rises

 

Distressed Property Inventory Shrinks and Drives Prices Up

22% drop in total foreclosure sales with 7% rise in price

The average price for foreclosures rose year-over-year by 7 percent in Q2 of this year, while the total number of foreclosures sold dropped 22 percent year-over-year in the same period. The average price of a foreclosure property in Q2 was just over $170,000, which reflects a 32% discount on the average price of non-foreclosures, a slight increase compared to the 30% discount foreclosures offered in the first six months of 2012. (via RealtyTrac)

Foreclosures available for purchase are limited

According to Darren Blomquist, vice president of RealtyTrac:

“The second quarter sales numbers provide solid statistical evidence of what we've been hearing anecdotally from real estate agents, buyers and investors over the past few months: there is a limited supply of available foreclosure inventory to choose from in many markets. “Given this shortage of supply and the seasonally strong buyer demand in the second quarter, it's no surprise that the average foreclosure-related sales price increased both on a quarterly and annual basis."

(via RealtyTrac)

Short sales on the rise

At the same time, short sales rose year-over-year (for the period between January and May) 18% from 2011 to 2012. Banks are clearly more and more interested in avoiding foreclosures and foreclosure processing when possible, clearing the way for a steep increase in short sales in the distressed property market. (via CNBC)