In the second quarter, foreclosure sales accounted for 23 percent of total sales in the U.S., but the drop in inventory of foreclosure homes has escalated the average foreclosure-related sales price.
Foreclosure data provider RealtyTrac reported that total foreclosure-related sales totaled 224,429 in the second quarter, a 12 percent decrease from the first quarter. The average sales price on a foreclosure-related property increased six percent to $170,040 from the previous quarter.
“The second quarter sales numbers provide solid statistical evidence of what we’ve been hearing anecdotally from real estate agents, buyers and investors over the past few months: there is a limited supply of available foreclosure inventory to choose from in many markets,” Daren Blomquist, Vice-President of RealtyTrac said in a statement.
This shortage of supply, Bloomberg Businessweek reported, is due to a measured approach of listing a limited percent of properties for sale. As of July, there were close to 1.47 million homes in some stage of foreclosure. But out of the 620,751 that were in lenders' possession, only about 15 percent are listed for sale, leading to higher prices, the publication reported.
“Given this shortage of supply and the seasonally strong buyer demand in the second quarter, it’s no surprise that the average foreclosure-related sales price increased both on a quarterly and annual basis,” Blomquist said.
Meanwhile, the highest percentage of foreclosure sales was recorded in Georgia, Nevada and California. In both Georgia and Nevada, foreclosure sales accounted for 43 percent of all residential sales, whereas in California it was 40 percent. However, the average sales price here increased four percent to $248,676. In Nevada, the average foreclosure sale price was $125,000.
Foreclosure filings, too, recorded a 10 percent dip compared to last year. Default notices, scheduled auctions and bank repossessions were reported on 191,925 U.S. properties in July, which is a decrease of three percent from the previous month, RealtyTrac reported earlier this month.
