Mortgages Blog

Finance Blogs » Mortgages Blog » Distressed homes selling fast

Distressed homes selling fast

By Judy Martel ·
Friday, December 27, 2013
Posted: 12 pm ET

In response to rising home prices, banks unloaded distressed homes in November at a 10 percent higher pace than they did a year before, according to the latest report from RealtyTrac.

All residential properties, including single-family homes, condominiums and townhomes, sold at an estimated annual pace of 5,146,565 in November, up slightly from October.

Eighteen states saw a decrease in annualized sales volume from a month ago and four states saw a decline from a year ago, with California leading at 14 percent, followed by Arizona at 12 percent, Nevada at 9 percent and Rhode Island at 4 percent.

Dumping foreclosures onto the market

States with the most efficient foreclosure processes, including California, Arizona and Nevada, will continue to see a decline in sales until sellers of nondistressed homes enter the market, Daren Blomquist, vice president at RealtyTrac, said in a release.

"The housing market recovery continued to be driven by investors and other cash purchasers in November," Blomquist noted. "Lenders are taking advantage of this environment to unload more of their bank-owned inventory and in-foreclosure inventory at the foreclosure auction."

Sales of bank-owned homes made up 10 percent of all residential property sales in November. Short sales represented 5.6 percent of the market, a decline from 6.5 percent in November 2012. Nevada had the highest percentage of short sales at 16.6 percent, followed by Florida at 14.2 percent, Illinois at 8.8 percent and Maryland at 8.6 percent.

Median home prices up 7 percent

Nationally, median prices of all homes, including distressed and nondistressed, increased 7 percent from a year ago, to $169,000. November was the 19th consecutive month that median home prices have increased on an annualized basis.

The median price of a bank-owned or in-foreclosure home was $110,500 in November, while the price of a nondistressed property was $181,500.

In some areas of the country, annual price increases were steep: Detroit's median price soared by 39 percent; Sacramento, Calif., was up by 30 percent; Atlanta was up 28 percent and San Francisco was up 27 percent.

Keep up with your wealth and mortgages and follow me on Twitter: @JudyMartel.

Get real-time rate quotes with Bankrate's Mortgage app.

Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
December 28, 2013 at 11:28 pm

this is what happens when people buy homes and cars way over there head,live on credit,and they blame everyone else for there problems ,that they created for theme self

December 28, 2013 at 9:28 pm

Okay, Dean, I'm going to wait and see if you are correct. I honestly wouldn't be surprised. We'll talk in a couple of years :)

December 28, 2013 at 6:53 pm

banks, government, and congress are for profits. they line their pockets, with our money, and there's nothing you can ever do about it. They really don't care, and there jobs are for life, not ours. happy new year 2014 congress *b*s*

deane gilmour
December 28, 2013 at 2:04 pm

Banks are unloading these homes since the local governments are begining to require their upkeep or destruction as well as rising property taxes. I feel sure that there will be another rash of foreclosures and/or "walk aways" by summer of 2014 due to the rise of taxes and already instituted in Congress a bill now tabled to remove the tax deduction of interest paid on home mortgages. Also foreign investment, as in my own neighborhood, in foreclosed homes now valued at as much as 80% less than the amount owed when the home was taken over by the banks, Fannie Mae, and Freddie Mac. The congressional tampering in the late 90's and early 2000's is the culprit and those same persons in Congress and now the White House will again get their fingers in the pot. I look for another 3 to 5 milion homeowners being put out by these manipulations by 2015