By MarketWatch
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Sales of foreclosures accounted for 20% of all U.S home sales in the third quarter of last year, according to a report from RealtyTrac, released this week.
That’s down from 22% in the second quarter and 30% of sales in the third quarter of 2010.
In the third quarter, 221,536 homes in some stage of foreclosure were purchased. The average sales price: $165,322, 34% lower than the average sales price of homes not in foreclosure.
The shrinking number of foreclosure sales is “not too surprising given the continued ambiguity surrounding proper foreclosure procedures — and the ripple effect that has on sales of foreclosed properties that might have been improperly foreclosed,” said Brandon Moore, chief executive officer of RealtyTrac, in a news release.
“The sooner the market gets more clarity about accepted foreclosure procedures, primarily through the long-promised settlement between multiple states attorneys general and major lenders, the sooner the market can more efficiently dispose of these distressed properties,” he added.
Read more real-estate news in this week’s pages, including why investors are awaiting the Obama administration’s plan to turn foreclosures into rental properties, as well as a slide show highlighting the top five and bottom five housing markets for the next three years.
Although the share of foreclosure sales may be shrinking, they’re still elevated, compared with previous years, Moore said.
“Even with the hurdles to selling foreclosures, foreclosure sales continue to represent a historically high percentage of all sales,” he said. “In 2005 and 2006, foreclosure sales consistently accounted for less than 5% of all sales nationwide.”
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Amy Hoak
, Real Estate writer
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Article source: http://www.marketwatch.com/story/foreclosures-smaller-share-of-home-sales-2012-01-27?reflink=MW_news_stmp