Foreclosures: Borrowers Hurt, Buyers Helped
NEW YORK (TheStreet) -- In what may be a silver lining to America's ongoing housing woes, the rising number of foreclosures also seems to be spurring opportunistic buyers into the marketplace.
During the second quarter, 248,534 homes received foreclosure filings, according to a RealtyTrac report on Thursday, up 5% sequentially but down 20% from the year-ago period.
Foreclosures made up 24% of residential sales in the June period. It was a slight drop from earlier periods proportionally, because the expiration of a homebuyer tax credit nudged more buyers to pony up for non-distressed homes. But RealtyTrac CEO James J. Saccacio indicated that in coming quarters, foreclosure sales may gain traction once again.
"While foreclosure sales increased in the second quarter, non-foreclosure sales increased even more, spurred on by the homebuyer tax credit that expired during the quarter," said Saccacio. "That had the net effect of lowering foreclosure sales as a percentage of total sales during the quarter, but that may be a temporary dip as the removal of the tax credit could drive more buyers back to discounted short sales and REOs."Perhaps unsurprisingly, Nevada, Arizona, California continued to have the most troubled housing markets in the country. Foreclosures accounted for more than half of Nevada's sales, 47% of Arizona's and 43% of California's. Meanwhile, Ohio, Kentucky and California posted the highest foreclosure discounts, with foreclosure sales prices at 43% of non-foreclosure prices, 42% and 39%, respectively. -- Written by Lauren Tara LaCapra in New York.
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