Real Estate Pro Articles

Illinois REO Foreclosed Properties Sales Fell in Third Quarter

[Valid RSS feed]  Category Rss Feed -
By : John Cutts    99 or more times read
Total number of foreclosed residences, including REO foreclosed properties that were sold during the July-September 2010 period declined in Illinois when compared with the previous quarter. Prices of foreclosures also dropped considerably, although the percentage of home sales accounted for by foreclosures remain high.

The third quarter of the current year saw most home buyers and investors staying away from Rockford foreclosure homes and distressed properties markets in various parts of the state as demand for such residences plummeted. For the quarter in focus, a total of 6,844 foreclosures in Illinois were purchased by buyers. This represents a decline of 24.34% compared with the 2010 second quarter.

For those who did purchase Illinois foreclosed properties during the 2010 third quarter, majority were able to pick a discount of over 40%. The average price of foreclosed dwellings for the quarter was $142,214, a price that is 41.34% cheaper than non-foreclosure residential properties. Although both prices and total sales showed poor numbers during the period, foreclosures still accounted for 24% of all home buying transactions in the state.

According to housing market analysts, waning buyer interest in REO foreclosed properties and other distressed real estate is mainly caused by the controversial investigation into lenders' foreclosure documentation procedures. They stated that, with lenders' processing of foreclosures being put under scrutiny, most buyers and real estate investors became wary of purchasing foreclosures for fear of not getting a clean title.

As demand for foreclosure houses for sale continues to decline, analysts expect prices to drop even further. They reported that the biggest price discounts are seen in properties offered through short sales and in bank owned residential properties. Nationally, prices for such residences in the third quarter were 32% lower than the average price of non-foreclosure housing units.

They also reported that the 2010 third quarter recorded the biggest discount in foreclosure prices since the 2005 fourth quarter. Also, the quarter recorded one foreclosure out of every four housing units sold all over the U.S. Analysts predict that the trend will likely continue until the early part of 2011 at least, when REO foreclosed properties and other types of foreclosures will continue to account for a large percentage of total residential sales, but being sold at heavily discounted rates.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

Related Articles

Print This Article
Add To Favorites




© All rights reserved to Real Estate Pro Articles