Foreclosure sales on the rise

The sale of bank-owned homes, or houses in some form of foreclosure, made up 28 percent of all residential sales in the U.S. during the first quarter, according to a RealtyTrac report. This figure is a slight increase from the fourth quarter of 2010, where similar sales made up 27 percent of the market. These homes typically sell for much less than they are worth, making them appealing to buyers looking to relocate.

"While foreclosure sales continue to account for an unusually high percentage of all residential home sales, sales volume is well off the peak we saw in the first quarter of 2009, when nearly 350,000 foreclosure properties sold to third parties," said James J. Saccacio, chief executive officer of RealtyTrac.

There are approximately 1.9 million homes currently in foreclosure, according to the report. The average sale price of these properties is $168,321, which is down almost 2 percent from the fourth quarter.

While sales may be on the rise, the volume of these homes is steadily declining, RealtyTrac reports. There were 158,434 sales of homes in some form of foreclosure in the first quarter, a 16 percent drop from the fourth quarter of 2010 and a 36 percent drop from a year ago.  

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