Average Sales Price of REO and Short Sale Properties Increases

RealtyTrac’s Q2 2012 U.S. Foreclosure Sales Report revealed today that the average sales price for bank owned properties (REO) increased by 6% over the first quarter in 2012 and 10% over the second quarter in 2011. This is the first increase in average sales price for REO properties since the second quarter of 2010. Short sales, on the other hand, saw a 5% increase in average sales price over the previous quarter, but were down 1% from the second quarter in 2011. Spurring the increases in foreclosure-related sales prices, RealtyTrac found that REO and short sales “decreased 12 percent from the previous quarter and was down 22 percent from the second quarter of 2011 – the first annual decrease in foreclosure related sales after five quarters of increases.”

Based on analysis of the report, Daren Blomquist, RealtyTrac Vice President, stated, “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 the markets. 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.” To read more about RealtyTrac’s findings on second quarter foreclosure-related sales, go to http://bit.ly/Ov1trI

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