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IRVINE, CA-The average price of a foreclosure-related home sale nationwide was $167,095 in first-quarter 2013, down 1% from the previous quarter but up 3% from a year ago, according to locally based online real estate and foreclosure marketplace RealtyTrac. Markets with the biggest annual increases in the average price of foreclosure-related sales included several Western markets such as San Jose, Las Vegas and Sacramento. This marks the fourth straight quarter with an annual increase in the average price of foreclosure-related sales.
As GlobeSt.com reported earlier this week, the number of US properties in some stage of foreclosure or REO that were sold during the first quarter decreased 18% from the previous quarter, down 22% from first-quarter 2012, according to locally based online real estate and foreclosure marketplace RealtyTrac. In addition, non-foreclosure short sales decreased 4% during the quarter, the firm reports.
The average price of a property in foreclosure was 30% below the average price of a non-foreclosure property in the first quarter, down from a 31% discount in the fourth quarter but up from a 28% discount in the first quarter of 2012. Both pre-foreclosure sales and bank-owned sales decreased from the previous quarter and a year ago.
“Most of the foreclosure properties are purchased by investors at the courthouse auctions and are paid for in cash, which is not possible for the average buyer looking for a home to live in,” said Rich Cosner, president of Prudential California Realty (which covers Orange, Riverside and San Bernardino counties), in a prepared statement. “Even investors at the courthouse auctions are bidding up the prices to the point that there is a greatly reduced opportunity to flip a property in a short period of time. Most of the investors today are buying the property, fixing it up and renting it out and hoping to have a great profit in three to five years.”
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
