Share of Distressed Homes Gets Larger
Repossessed home sales took largest share in existing homes sales
Record level of bank-owned and government-owned sales
Sale of repossessed/foreclosure homes is the largest part of existing home sales. One of every four existing home sold was a distressed property. In Nevada, foreclosure homes constituted half of existing home sales. This percentage was 47 percent in Arizona.
Foreclosure home sales reached the highest level in August 2010. Within this framework, the largest share goes to bank foreclosure homes. As a result of this development, the average price of foreclosure homes reached the lowest ($178,600) level ever.
Freeze on bank foreclosure home sales is over
Some banks put freeze on foreclosure sales due to procedural problems. However, sale of bank foreclosure homes started on October 20, 2010. This means that the share of distressed properties will keep going up. Bank of America, for instance, decided to resume selling more than 100,000 bank-owned properties in 23 states. Chase and GMAC Mortgage decided to do the same.
Stand of the President’s Office on foreclosures
President Obama’s top housing official, Secretary of Housing and Urban Development indicated, this week (October 2010) that it would be safe to resume selling bank-owned properties.