Thursday, March 25, 2010

Nearly Half of Home Purchases Are Distressed Properties: Survey

  • Wow. This is pretty astounding. 17% of all US home sales are of Short Sales, 14.4% are Damaged REO homes, and 16.6% are move in ready foreclosures.

    tags: foreclosures, reos, short, sales

    • There are three major types of distressed properties: damaged REO, move-in ready REO, and short sales. During the period from November to February, sales in all three categories rose, according to Campbell Surveys. Damaged REO grew from 12.3 percent to 14.4 percent; move-in ready REO grew from 12.6 percent to 16.6 percent, and short sales grew from 12.4 percent to 17.1 percent.
    • Last month distressed properties – those involving homes acquired as part of a foreclosure or pre-foreclosure sale – accounted for 48.1 percent of the home purchase transactions
    • As more distressed properties have come onto the market, Campbell Surveys reports that home prices are again showing signs of weakness. Average home prices for all four categories of properties – damaged REO, move-in ready REO, short sales, and non-distressed – declined from January to February in the latest survey.

Utah Home Sales don't count for nearly this many foreclosures, especially Real Estate Cache Valley.

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