Area foreclosed home sales percentage below state, U.S.

by The City Wire staff ([email protected]) 51 views 

Less than 15% of all homes sold in the Fort Smith metro area during the first quarter of 2010 were foreclosed homes, according to a new report from Irvine, Calif.-based RealtyTrac.

By comparison, foreclosure homes accounted for 31% of all home sales nationwide, 16.9% in Arkansas and 12.94% in Oklahoma during the first three months of 2010. The considerably lower percentage of foreclosed home sales in the Fort Smith area compared to the U.S. provides an example of the reduced extent to which area supply outpaced demand.

The average price of the foreclosed homes sold in the Fort Smith area was $102,964, almost 7% lower than the price for homes not in the foreclosure process. Nationwide the average price as $171,971 and was 26.7% lower than the average prices of homes not in foreclosure.

The number of new and existing homes sold in the January-April 2010 period in Crawford, Franklin and Sebastian counties totaled 590, up 1.8% over the same period in 2009, according to the latest report from the Arkansas Realtors Association. The value of those homes sold in the period totaled $70.252 million, up just 0.4% compared to the 2009 period.

Sebastian County posted the most foreclosure home sales with 41 during the first quarter of 2010 and 49 in the first quarter of 2009. Crawford County had 16 foreclosure homes sold in the first quarter of 2010 and 13 in the 2009 period. Sebastian and Crawford counties accounted for 7.68% of all foreclosed homes sold in Arkansas during the first quarter of 2010.

RealtyTrac reported a total of 232,959 U.S. properties in some stage of foreclosure — default, scheduled for auction or bank-owned (REO) — sold to third parties in the first quarter, a decrease of 14% from the previous quarter and down 33% from the peak during the first quarter of 2009, when sales of foreclosure homes accounted for 37% of all residential sales.

“First time homebuyers and investors continue to buy foreclosure properties in large numbers, and at substantial discounts,” James J. Saccacio, RealtyTrac CEO, said in a statement. “As lenders have begun repossessing homes at record levels over the first half of 2010, it will be interesting to watch how they will manage the inventory levels of distressed properties on the market in order to prevent more dramatic price deterioration.”
 
According to RealtyTrac, the average sales prices on properties in some stage of foreclosure decreased 23% from 2006 to 2009 while the average discounts on foreclosure purchases steadily increased from 21% in 2006 to 27% in the first quarter of 2010.

OTHER REALTYTRAC FINDINGS
• More than 1.2 million U.S. properties in some stage of foreclosure sold to third parties in 2009, an increase of 25% from 2008 and an increase of nearly 327% from 2007.

• Total foreclosure sales in 2009 were up more than 1,100% from 2006 and up more than 2,500% from 2005. Foreclosure sales accounted for 29% of all sales in 2009, up from 23% in 2008 and up from 6% in 2007.

• The average sales price of properties that sold while in some stage of foreclosure in 2009 was 25% below the average sales price of properties not in the foreclosure process. That was up from an average discount of 22% in 2008 but down from an average discount of 26% in 2007.

• A total of 144,503 bank-owned (REO) properties sold to third parties in the first quarter, down 13% from the previous quarter and down 27% from the first quarter of 2009. REO sales accounted for 19% of all sales in the first quarter, up from nearly 16% in the previous quarter but down from 21% of all sales in the first quarter of 2009.

• REOs sold for an average discount of 34%, up from an average discount of nearly 32% in both the previous quarter and the first quarter of 2009.
 
• Nevada, California, Arizona post highest percentage of foreclosure sales in the first quarter. Foreclosure sales accounted for 64% of all sales in Nevada in the first quarter, the highest percentage of any state, although Nevada’s percentage was down from 65% of all sales in the previous quarter and 75% of all sales in the first quarter of 2009.