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Century 21 Gold

REAL ESTATE: Inland foreclosure sales, 46% of 2012

Sales contracts inked on residential homes in distress fell in 2012 across California, but still constitute a purchase pool that is significantly larger than the nation, according to a new report by an online reporting service of foreclosure property.

A total of 235,114 properties in some stage of foreclosure or bank-owned status were sold in California in 2012, a decrease of 8.8 percent from 2011 and 10.6 percent from 2010, Irvine-based RealtyTrac said Thursday.

Still, foreclosure-related sales accounted for 38 percent of all California residential sales during 2012, a buy-pool that is 17 basis points higher than the nation’s average.

The Riverside-San Bernardino-Ontario region was markedly higher than that: Foreclosure-related transactions accounted for 45.8 percent of all residential sales.

The percentage of the 947,995 distressed property sales across the U.S. was 21.4 percent.

“Although foreclosure-related sales represent a shrinking share of total sales, primarily because of fewer bank-owned purchases, distressed sales are still a disproportionately high portion of the overall housing market,” Daren Blomquist, vice president of RealtyTrac, said in a statement.

The Inland area had the highest percentage of foreclosure-related sales among the nation’s 20 largest metropolitan areas.

Other spots in the nation where distressed sales accounted for 30 percent or more of all sales in 2012 were: Atlanta, 41 percent; Los Angeles, 36 percent; Phoenix, 34 percent; San Diego, 34 percent; Detroit, 32 percent; San Francisco, 31 percent and Chicago, 31 percent.

Although the Inland region’s percentage of foreclosure-related sales — properties in some state of foreclosure or deemed as a bank-owned property — ranked at the top among 20 cities in 2012 with 43,598 sales, the RealtyTrac report shows the percentage of all residential homes sold in that category has been shrinking.

Foreclosure-related sales in the Inland area are down12.6 percent from 2011 when 49,893 distressed sales were reported and down 21.1 percent from 2010, a year RealtyTrac reported 55,263 such sales.

While distressed properties — whether bank-owned, pre-foreclosure or short sales not in foreclosure — are still selling at a significant discount compared to non-distressed properties, Blomquist said average distressed-property prices are increasing in many markets because of strong demand and limited inventory.

The average sales price of a distressed property in California in 2012 was $254,235, a 5.1 percent gain from 2011 and a 1.1 percent gain from 2010. The average foreclosure discount was 39 percent.

Foreclosure-related property in the Inland area sold at the average price in 2012 of $184,280, up from $176,769 in 2011 and $181,892 in 2010.

The percentage of non-foreclosure short sales in California in 2012 also rose 1 percentage point from 2011, accounting for 15 percent of all residential sales. The average amount short on those types of sales was reported by RealtyTrac to be $120,577.

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Published Monday, March 4, 2013 6:44 PM by CENTURY 21 Gold Real Estate

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