The Real Deal New York

Foreclosures account for 20 percent of U.S. sales, just 5 percent in New York

January 26, 2012 09:30AM

Properties in some stage of foreclosure accounted for one-fifth of all residential home sales in the U.S. during last year’s third quarter, according to a report released today by RealtyTrac. That’s down from 22 percent of all sales during the second quarter, and 30 percent of all sales during the prior-year quarter. RealtyTrac attributes the declining number to the robo-signing scandal, but notes it’s still at a historically high level compared to the pre-recession norm of less than 5 percent.

“That trend 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 RealtyTrac CEO Brandon Moore.

The average priced of those properties increased 1 percent from the second quarter of 2011 to $165,322, which is 3 percent less than the average price during the same three months of 2010. It’s a 34 percent discount from the average sales price of homes not in distress.

In New York state just 4.6 percent of all sales were foreclosures, the third lowest rate in the nation. Those homes sold for an average price of $298,890, the second highest in the country, or a 33.1 percent discount on non-distressed sales.

In Nevada, 75 percent of all homes sold during the third quarter were in foreclosure, by far the tops in the nation, followed by California and Arizona, where foreclosures comprised 44 percent and 43 percent of sales, respectively. — Adam Fusfeld