Calif. distressed homes sell at 39% discount. OC Register

Source: http://www.ocregister.com/articles/sell-290148-foreclosure-homes.html?source=patrick.net#ArticleHeader

According to RealtyTrac, there were 211,839 foreclosure-related sales in 2010 in California – a third-party sale of a distressed property that occurs while the property is actively in some stage of foreclosure, from default to bank-owned.

According to the Irvine-based foreclosure tracking firm’s year-end study:

ADVERTISEMENT More from Business
Laguna home has lots of house for price
Hippie Chipotle-style burrito chain lands in O.C.
Is 6.7% unemployment the new normal?
The state’s 2010 foreclosure-related selling pace was 42% below 2009 and 30% below 2008. Nationally, foreclosure sales were 31% below 2009 and 14% less than 2008′s pace.
California foreclosure sales accounted for 44 percent of all sales in 2010, the third highest of any state but also down from a peak of 57 percent in 2009. Fourth quarter foreclosure sales in California accounted for 45 percent of all sales, up from 40 percent in the third quarter. foreclosure homes accounted for nearly 26 percent of all U.S. residential sales during the year, down from 29 percent of all sales in 2009 but up from 23 percent of all sales in 2008.
The average selling price of a California foreclosure-related home was $251,693 – that is a 39% “foreclosure discount,” the percentage difference between average sales price of foreclosure sales vs. average sales price of non-foreclosure sales. Nationally, the foreclosure discount was 28%
These discounts in California ranged in 2010 from 46% for bank-owned properties to 29% for homes sold before lenders seized a property. National foreclosure discount was 36% for bank-owned homes and 15% for homes sold before lenders seized a property.
RealtyTrac notes: “Foreclosures continue to represent a substantial percentage of all U.S. residential sales and continue to sell at an average sales price that is significantly below the average sales price of properties not in foreclosure — the result of a bloated supply of foreclosures and weak demand from homebuyers. The catch-22 for 2011 is that while accelerating foreclosure sales will help clear the oversupply of distressed properties and return balance to the market in the long run, in the short term a high percentage of foreclosure sales will continue to weigh down home prices.”