Nationwide, the average sales price of a foreclosure was nearly 27 percent below the average sales price of a non-distressed property in the first quarter of 2011 (January-March), RealtyTrac reports in its latest research. And in several states, discounts on foreclosures rose even higher.
“There is massive discounting going on,” says Rick Sharga, RealtyTrac senior vice president.
And while discounts are growing, the inventory of foreclosed homes still remains high too. RealtyTrac estimates that it could take up to three years to clear the current inventory of 1.9 million bank-owned properties if the current first quarter foreclosure sales pace continues.
Ohio and Illinois were found to offer the largest discounts on distressed properties. In both of these states, foreclosure discounts were 41 percent below non-distressed properties’ home prices in the first quarter. Kentucky followed, with average discounts on foreclosures at 39 percent.
Other states with average foreclosure discounts of more than 35 percent were Maryland, Tennessee, Wisconsin, Delaware, Pennsylvania, Oklahoma, and Louisiana, RealtyTrac reports.
Source: “Foreclosure Homes Account for 28 Percent of Q1 2011 Sales,” RealtyTrac (May 26, 2011)
Quick Property Search
Connections:
