Foreclosures Sell for 29 Percent Discount - |

Armando Montelongo Team Blog

Foreclosures Sell for 29 Percent Discount

Sales prices for houses in some stage of foreclosure averaged 29 percent less than the prices for non-foreclosures in the last three months of 2011, according to a new report.

RealtyTrac’s U.S. Foreclosure Sales Report also showed foreclosure-related sales made up 24 percent of all residential transactions in the fourth quarter. The total was 204,080 properties.

Foreclosures made up 56 percent of all sales in Nevada in 2011, the highest in the nation, followed by California (43 percent), Georgia (39 percent), Arizona (38 percent) and Michigan (33 percent).

The average sales price of foreclosure-related houses in the fourth quarter was $164,944, down 5 percent from 2010.

There were 907,138 foreclosure-related sales nationwide last year, 23 percent of all transactions. The total was 2 percent less than in 2010.

Here is RealtyTrac’s graph of total foreclosure-related sales (blue bar) and the percentage of all sales that were foreclosure-related (orange line):

What do you think? Is this a good sign for real estate investors? Please leave your thoughts below: