Foreclosure Sales go up while the Economy is down

photo credit: reclaimedhome

A national report by Realty Trac, based out of Irvine, Ca, showed that more than 30% of the homes sold in Colorado during the first quarter were distressed homes. It shows that foreclosure sales go up while the economy is down. Also, for the first time the report released data concerning third party sales by banks. The report list home sales in two categories, the first, short sales, and the second, real estate owned (REO).

A report from the Colorado Division of Housing showed their numbers being higher than the numbers reported by Realty Trac. The numbers of foreclosed homes sold at public trustee auctions in Colorado was 6,686 for the first quarter. Rick Sharga, spokesman for Realty Trac said, "Our number for total sales is very close to that number, with this report, we were looking at third-party, arms-length sales. We did not count the foreclosure sales when the bank was the highest bidder."

The numbers may seem high to residents of Colorado, however, they represent only 2 percent of properties in any stage of foreclosure nationally. James J. Saccacio, CEO of Realty Trac said, "First time home buyers and investors continue to buy foreclosure properties in large numbers, and at substantial discounts, 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."

Read the full article from Inside Real Estate News

Posted on July 07, 2010 13:49:49 by Blog Author