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Thursday, May 26, 2011

Sales Of Foreclosed Homes 'Astronomically High' In First Quarter

Huge backlog of distressed properties means any housing recovery is a long way away

Sales of homes in some stage of foreclosure declined in the first three months of the year, but they still accounted for 28 percent of all home sales — a share nearly six times higher than what it would be in a healthy housing market.

Foreclosure sales, which include homes purchased after they received a notice of default or were repossessed by lenders, hit the highest share of overall sales in a year during the first quarter, foreclosure listing firm RealtyTrac Inc. said Thursday.

"It's an astronomically high number," said Rick Sharga, a senior vice president at RealtyTrac. "In a normal market, you're looking at the percentage of homes sold in foreclosure to be below 5 percent."

1 comment:

Anonymous said...

Sounds like good news to me. We need to clear out this inventory of foreclosures ASAP