Distressed Home Sales Fall,
Less bank-owned homes and those in some stage of foreclosure were sold in the second quarter, according to an industry tracking firm. However, the share of distressed homes grew in the housing market in the second quarter, and prices for those homes increased, as lenders slowly release their backlog of homes into the market tomaximize value.
Bank-owned and foreclosure-bound home sales fell in the second quarter, as banks slowly re-introduce their backlog of distressed homes to the market to keep prices up.
In July, 1.47 million U.S. homes were in some stage of the foreclosure process or owned by banks. Only about 15 percent of the 620,751 homes controlled by lenders are listed for sale, according to a recent report by foreclosure listing firm RealtyTrac Inc.
Despite the decline, distressed homes grew as a share of the overall housing market in the same period, according to RealtyTrac. Foreclosure sales accounted for 23 percent of all U.S. home sales, which includes sales of new and previously occupied homes. That share is up from 22 percent in the first quarter and 19 percent a year prior, the firm said.
With fewer troubled homes for sale and stronger demand during this year's spring home-buying season, sale prices for bank-owned homes and those in some stage of foreclosure have recorded the biggest year-over-year increase since 2006. Sale prices are up 6 percent from the first three months of the year and 7 percent from a year earlier.
While costing more, the average price of a foreclosure sale amounted to a 32 percent discount on the average price of non-foreclosure homes, RealtyTrac said. The discount rose from 30 percent in the first quarter and second quarter of 2011.