Foreclosures made up 25pc of United States home sales in 3Q
LOS ANGELES: The worst summer for home sales in decades also put a chill on foreclosure sales, even as the average discounts on the distressed properties got bigger compared with other types of homes.
Foreclosure sales plunged 25 percent in the JulySeptember quarter versus the April-June period and tumbled 31 percent from the third quarter last year, foreclosure listing firm RealtyTrac Thursday.
Sales of non-foreclosed properties fell 29 percent sequentially and nearly 31 percent from the third quarter last year, the firm said.
The decline in sales of bank-owned properties and other homes in some stage of foreclosure is in line with an overall housing market slowdown that took hold after federal homebuyer tax credits
said expired in April.
The fallout over foreclosure processing errors that prompted some lenders to temporarily halt sales of bankowned homes wasn't a significant factor in the sharp thirdquarter drop in foreclosure sales, said Daren Blomquist, a RealtyTrac spokesman.
"We could expect probably in the fourth quarter to see that percentage of foreclosure sales dip because buyers are a bit skittish about purchasing foreclosure properties, given the questions surrounding the foreclosure process," Blomquist said.
Already, the firm has seen a decline in foreclosure activity in November, which suggests a holdover effect from the foreclosure documents mess. That could mean fewer home sales in the final months of the year - already a traditionally slow period. -Ap