Monday, December 2, 2013 / by Nathan Clark
Sales of “distressed” properties in the United States were a mixed bag in October, with short sales down but bank-owned and auction sales on the rise, according to a leading foreclosure listings service.
RealtyTrac reported that short sales made up 5.3 percent of all residential sales in the October, a drop from 6.3 percent in September and an 11.2-percent fall from October 2012. Sales of more traditional foreclosed homes – bank-owned sales and auctions – rose to 9.6 percent of all sales nationwide, up from 8.9 percent in September and up 9.4 percent from October of last year.
According to the RealtyTrac report, after popularity in 2011 and 2012, short sales aren’t as preferred by banks as the method for disposing of a defaulted property. Rising prices and demand from institutional investors have made repossession and re-selling the more preferred route for banks now.