Fore­clo­sures made up 25pc of United States home sales in 3Q

The Pak Banker - - International3 -

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

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