'Substantial' Discounts Still Offered on Foreclosures

'Substantial' Discounts Still Offered on Foreclosures
Could the foreclosure crisis finally be fading away? REO and short sales comprised about 11 percent of total home sales in July, the lowest share since December 2007, CoreLogic reports. "The ongoing shift away from REO sales is a driver of improving home prices, as REOs typically sell at a larger discount than do short sales," CoreLogic notes. The pre-crisis share of distressed sales typically was about 2 percent, so analysts say there is still a ways to go. Distressed sales are making up a shrinking share of sales nationwide, but the average discount on them continues to be “substantial,” says Daren Blomquist. See the median sales price of distressed residential properties.