According to Q3 2014 Residential and Foreclosure Sales Report by RealtyTrac, the median sales price of distressed residential properties last September is 37 percent below the sales price of non-distressed properties across the country.
Distressed residential homes median price, which includes both foreclosures and bank-owned when sold, was $130,000 nationwide compared to the median price of non-distressed properties of $205,000.
“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 VP. “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.”
“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,” he added. “The share of homes selling above $200,000 is up 7 percent from a year ago, and the share of homes selling above $500,000 is up 15 percent from a year ago.”
Distressed homes were most heavily discounted in the following metropolitan areas: Pittsburgh (67 percent), Milwaukee (67 percent), Cleveland (64 percent), and Memphis (59 percent).
Both distressed and non-distressed U.S. residential properties, when combined, have a median sales price of $195,000 in September. This shows an increase of 1 percent from August this year and 15 percent from a year ago. This is actually the biggest year-over-year rise since October 2005.
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