Distressed Properties Account for 39% of Home Sales

Data released by the National Association of Realtors (NAR) Tuesday show that distressed properties, including bank-owned homes and pre-foreclosure short sales, made up 39 percent of the first quarter’s existing-home sales. That’s up from 36 percent a year earlier.

Overall, sales of previously owned homes rose to an annual rate of 5.14 million units during the first three months of this year, the trade group reported. That pace is 8.3 percent higher than during the previous quarter and essentially flat, down just 0.8 percent, compared to the same period last year.

NAR says existing-home sales continued to recover in Q1 with quarter-over-quarter gains recorded in 49 states and the District of Columbia. Vermont was the only state to post a decline. There, existing-home sales dropped 7.1 percent.

With distressed homes grabbing such a large share of the market, the median home price in most areas continues to slide. NAR says distressed properties typically sold at a discount of about 20 percent during the first quarter.

According to the trade group’s study, the national median existing single-family home price was $158,700 in the first quarter, down 4.6 percent from $166,400 in the first quarter of 2010…

This article is from DSNews.com; read it in full here: “Report: REOs and Shorts Accounted for 39% of Q1 Existing-Home Sales.”

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