RealtryTrac reported a low supply of bank-owned homes or properties on the verge of foreclosures during the second quarter of 2012, which drove an annual sales price increase for the first time since 2010.
Based on the data released today by the company, the total sales for bank-owned homes or properties nearing foreclosures was 22 percent higher, compared with the total sales recorded during the previous quarter.
According to RealtyTrac, the $170,040 average foreclosure-related sales price during the second quarter, increased by 6 percent compared to the last quarter, and 7 percent higher compared with the same period in 2011.
The online marketplace for foreclosure properties noted the annual sales price increase this quarter was the biggest since the fourth quarter in 2006.
Based on the company’s report, the average sales price of foreclosure homes are 32 percent lower, compared with the average price of non-foreclosure homes. The sales gap between bank-owned homes and pre-foreclosure went down during the second quarter. The number of bank-owned homes is higher by 9,833. Pre-foreclosure sales were higher in 13 states and in the District of Columbia.
Daren Blomquist, vice-president of RealtyTrac said, “Given 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. 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.”
In addition, Blomquist said the inventory shortage of foreclosure homes will ease if the number of home foreclosures climbs in three consecutive months starting in July, when the properties fall under the listed short sales or bank-owned homes.
Furthermore, he said, “The increase in short sales of properties that have not even started the foreclosure process indicates that lenders are moving further upstream to deal with their distressed inventory, thereby avoiding the increasingly complex and lengthy foreclosure process altogether.”
The company’s report showed third parties bought a total of 107, 298 pre-foreclosure homes in default, or scheduled for action, 10 percent lower than the first quarter. On the other hand, third parties purchased a total of 117,131 bank-owned homes during the second quarter, 13 percent lower compared with the previous quarter.
The highest percentage of home foreclosures are in the states of Georgia and Nevada, both accounted for 43 percent. California ranked second with 40 percent, Michigan (35 %), Arizona (33%) , Illinois (27%), New Hampshire (24 %), Colorado, Wisconsin & Minnesota (22%), Oregon & Florida (21 %).
In July, there were 1.47 million homes nearing foreclosures or bank-owned homes. There were 620,751 homes under the lenders possessions, but only 15 percent were listed for sale.
A previous report from S&P/Case Shiller Index states the housing market started to rebound in June for the first time since the economic crisis. Home prices increased by 0.5 percent.