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.