Short sales lead the housing market in second quarter

RealtyTrac recently released its Q2 2011 U.S. Foreclosure Sales Report, which found sales of bank-owned homes and those in some stage of foreclosure made up 31 percent of all U.S. residential sales in the second quarter of 2011. While the figure was down from the 36 percent reported in the first quarter, it was an increase from the second quarter of 2010, which had 24 percent of all sales stemming from foreclosed properties.

The report also found the average price of homes in foreclosure or bank owned decreased less than 1 percent from the first quarter, but fell 5 percent from the second quarter of 2010. Unfortunately, the average sales price for these properties was 32 percent below the average sales price for homes not in foreclosure, indicating the pressure distressed properties put on home prices.

James Saccacio, CEO of RealtyTrac, said the average price of foreclosed properties is good news for investors and buyers looking for a bargain.

"Maybe less evident, however, is the good news in this report for distressed homeowners looking to sell, and even lenders saddled with large portfolios of delinquent loans," Saccacio said.

In an interview with the Wall Street Journal, Matt Yogerst, a real estate agent with Remax Realty 100, said the large amount of inventory available to buyers is decreasing their sense of urgency.

"Even if they find a house they like, if you don't give it away to them, basically, they'll wait until the next foreclosure sale comes up and they get that super-buy," Yogerst said.  

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