Distressed Homes Make Up 26% of Sales

Irvine, CA, May 31, 2012 -- Distressed homes accounted for more than 25% of home sales during the first three months of the year, according to tracking firm RealtyTrac.

Homes that were either in default, scheduled for auction or bank-owned made  up 26% of all residential sales during the first quarter, up from 22% in the previous quarter and 25% a year earlier, RealtyTrac said.

A total of 233,299 distressed properties were purchased during the quarter, an 8% increase from the fourth quarter of 2011.

Those homes sold for an average of $161,214, 27% below the average price of a home not in foreclosure.

"Foreclosure-related sales picked up in the first quarter, particularly pre-foreclosure sales where a distressed homeowner is selling to avoid foreclosure -- typically via a short sale," CEO Brandon Moore said in a press release.

Pre-foreclosure sales, which are often sold as short sales, hit a three-year high during the quarter.

There were nearly 110,000 short sales in the quarter, up 25% from a year earlier and comprising 12% of all homes sold during the first quarter, according to RealtyTrac.