Foreclosures and short sales at 26% discount
According to RealtyTrac, nearly 250,000 residential properties in some stage of foreclosure changed hands during the second quarter. They sold for about 26% less than non-foreclosed homes, compared to 35% less in the first quarter.Â A little more than half of these deals were of properties repossessed by banks, and the remainder came from short sales.Â There was regional variation in the foreclosure sales data. Rust Belt states like Ohio and Michigan had moderately or high levels of foreclosure sales, but the former bubble states is where foreclosures really dominate.Â In Nevada, they accounted for 56% of all transactions, the highest percentage in the nation. Arizona (47%) and California (43%) also had very high levels.Â Foreclosure sales were much rarer in Iowa (4.4%), the District of Columbia (5.6%), Montana (6.4%) and New York (7.5%).Â The best foreclosure deals were to be found in Ohio, where foreclosure properties sold for 43% less than non-foreclosed homes. Kentucky's
discount was 41%, and California's 39%.