Distressed residential properties in the United States sold for a median 37% below market prices in September, according to the latest foreclosure report.
This was $130,000 nationwide compared to the median price of $205,000 for non-distressed homes during the month, according to the data from RealtyTrac’s report covering the third quarter of the year.
‘Even as the share of distressed sales decreases, the average discount on distressed properties continues to be substantial because the primary factors driving that discount are still in place,’ said Daren Blomquist, RealtyTrac vice president.
‘Distressed properties are typically in poor condition and have a highly motivated seller whether that seller is the distressed homeowner in foreclosure or the bank that has repossessed the property through foreclosure,’ he explained.
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The major metropolitan areas were distressed homes were most heavily discounted were Pittsburgh and Milwaukee both at 67%, Cleveland at 64% and Memphis at 59%, a breakdown of the data shows.
Overall, the median sales price of US residential properties, both distressed and non-distressed combined, was $195,000 in September, an increase of 1% from August and 15% from September 2013, the largest year on year increase since October 2005. September 2014 was also the 30th consecutive month in which the median home price increased annually.
‘Median home prices nationally in September were boosted by a new low in the share of distressed sales during the third quarter, resulting in fewer home sales on the lower end,’ Blomquist pointed out.
‘The share of homes selling above $200,000 is up 7% from a year ago, and the share of homes selling above $500,000 is up 15% from a year ago,’ he added.
This article was republished with permission from Property Wire.