Home Buyers Flocked to Foreclosures in Second Quarter

foreclosureAccording to new data from RealtyTrac, 24% of all U.S. properties sold in the second quarter were foreclosed homes.

Banks will foreclose on about 1.2 million homes this year, compared with 1 million last year and just 100,000 in 2005, Reuters reported.

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Foreclosed houses sold at an average discount of more than 26% versus non foreclosed homes.

At this rate, it will take three years for the market to work through the glut of distressed properties.

"This is the kind of volume of activity that we need to see for the market to heal," RealtyTrac senior vice president Rick Sharga told Reuters.

"Our projections have been that we will get through the distressed inventory largely by the end of 2013, and these kinds of numbers are on target to get us there," he said.

Nevada was among the worst-hit states, with foreclosed homes accounting for about 56% of all sales.
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