The number of bank-owned homes hit the three-quarter million mark in July, according to the latest report by RealtyTrac. It is estimated that bank-owned homes currently account for 15 to 20 percent of all resale inventory on the market, meaning cities that are swimming in foreclosure inventory could have a long road of recovery ahead.
We took a quick look at the median list price of homes for sale on Trulia, and the median list price of REO, or bank-owned, homes in five cities with the highest number of foreclosures. We found that sellers in areas like Phoenix, Vegas and Bakersfield may have a long wait ahead of them as the median price of REO homes in those cities is lower than the median list price of non-REO homes by 12 percent or more, while would-be bargain hunters in cities like Riverside and Cape Coral may have a more difficult time finding a large selection of below-market deals.
Foreclosures can be complicated - whether you are trying to avoid one, or trying to buy one. Got a question about foreclosures or the foreclosure process? Get answers on Trulia Voices, a Q&A forum on Trulia.com where consumers and professionals can exchange information and ask and answer questions about their local real estate markets.
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August 21st, 2008 at 9:25 am
That is an interesting chart you have made there. I am always looking for more solid numbers about how much we can discount an REO list price. Of course there is no set number because there are so many other variables, but I would at least like an average.
August 21st, 2008 at 10:27 am
Thanks for your comment! We are crazy about data around here and constantly looking for ways to make it more useful. Glad you liked the chart!
August 26th, 2008 at 4:29 pm
Hi Melissa:
Those are some interesting statistics. It’s amazing how some of the biggest markets were hit the hardest.
Thanks for the great post.
Misty
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