Homes in some stage of the foreclosure process now account for 28 percent of total home sales.
In more normal real estate markets, foreclosure sales represent only about 5 percent -- or less -- of sales.
While the share of total sales in foreclosure peaked at 37.4% in 2009, many believe that banks are deliberately withholding foreclosed homes from the market to prevent suppressing prices -- and, possibly, to avoid writing down their asset values as well.
This explanation is consistent with the fact that bank-owned homes are selling at a 35% discount relative to other home sales. |
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