May
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Foreclosure Activity Continues to Hit Home

May 26, 2011

While foreclosures accounted for more than a fourth of all Illinois home sales in the first quarter of this year, that’s an improvement over the first quarter of last year when more than a third of all sales were foreclosures.

According to RealtyTrac, an online hub of distressed properties, Illinois had 5,529 homes sold in some stage of foreclosure during the first quarter of 2011.

home with price reduced foreclosure sign in frontThose foreclosure-related sales equate to 29.38 percent of all homes sold. While that’s an increase from 25.3 percent the previous quarter, it’s also a decline from the 33.9 percent during the same period of 2010.

Nationally, foreclosure-related purchases in the first quarter of 2011 accounted for 28 percent of all U.S. residential sales. That’s an increase from 27 percent in the fourth quarter of 2010 but a decrease from 29 percent in the first quarter of 2010.

The average sales price of U.S. homes in some stage of foreclosure during the first quarter was $168,321, down 1.89 percent from the fourth quarter of 2010 and 1.46 percent from the first quarter of 2010.

In Illinois, the average sales price for foreclosed properties in the first quarter of 2011 was $132,983. That’s a 40.90 percent discount over the average sales price of properties not in foreclosure. After rising from 38 percent in both the previous quarter and the first quarter of 2010, that put our state second in the nation for highest foreclosure discount.

Only Ohio posted a higher average discount — barely — at 41.14 percent.

Nationally, the average sales discount was 26.66 percent.

“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.

“While this is probably helping to keep home prices relatively stable, it is also delaying the housing recovery. At the first quarter foreclosure sales pace, it would take exactly three years to clear the current inventory of 1.9 million properties already on the banks’ books, or in foreclosure.”

At least those in the market to buy can take their time.

Categories: Economy, Mortgages
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Tracey

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[...] just discussed the myriad amount of foreclosures available at a deep discount to Chicago real estate buyers, now there’s more news to show the attractiveness of investing in a home right [...]

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