Joe Jackson shared this blog earlier and I see some real value in this report. It clearly shows that foreclosures / bank owned homes are still a large segment of the current housing market.
The worst summer for home sales in decades also put a chill on foreclosure sales, even as the average discounts on the distressed properties got bigger compared with other types of homes. Foreclosure sales plummeted 25 percent in the July-September quarter from the April-June period. A whopping 31 percent from the the 3Q last year. Sales of non-forclosed properties fell 29 percent sequentially and nearly 31 pecent from last year.
Tha fallout over foreclosure processing errors that prompted some lenders to temporarily hald sales of bank-owned homes wasn't a significant factor in the sharp third quarter drop in foreclosure sales. As a share of overall home sales, foreclosure sales rose slightly from the second quarter. They peaked at 37 percent of all sales in the first quarter of 2009, but have ranged between 25 and 30 percent this year.
Weaker demand following the end of the homebuyer tax credits has given buyers more leverage to negotiate better deals with banks and other distressed sellers. Buyers are also competing with fewer buyers, though foreclosed properties in some some markets, such as Las Vegas, still get multiple offers that can end up bumping up the sales price.
Several other states had foreclosure sales that accounted for at least one-quarter of all homes sales: Florida, Massachusetts, Michigan, Georgia, Oregon, Idaho, and Illinois
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