Foreclosures still dominate real estate market - East Valley Tribune: Business

Foreclosures still dominate real estate market

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Posted: Sunday, May 8, 2011 3:00 am

Foreclosures continue to pummel the housing market. About a third of all home sales nationwide during April were foreclosures, leading to what analysts call a "double dip" in housing prices.

Prices during the month were 0.7 percent lower then the previous low hit in March 2009, according to Clear Capital's monthly Home Data Index Market Report released Thursday.

Some key points from the report:

-- Across the country home prices fell 5 percent during April.

-- Nationwide, home prices fell 11.5 percent over the previous nine-month period, a rate of decline not experienced since 2008.

-- All major metro areas the firm tracks showed quarter-over-quarter price declines.

-- Nationwide, bank-owned sales as a percent of all sales hit 35 percent. Among the worst-hit metro areas were Detroit, where 56 percent of all sales were foreclosures or short sales; Fresno, Calif. (55 percent); and Minneapolis-St. Paul(over 50 percent).

-- Quarter-to-quarter, the Midwest performed worse than the nation as a whole, though it's the only region yet to double-dip largely because of big gains in home sales made during the homebuyer's tax credit market. Quarter-to-quarter prices in the Midwest fell almost 9 percent, while annual prices during April fell 6.3 percent. Those declines happened primarily because of a 4.3 percentage point increase in so-called REO saturation -- those bank-owned properties -- which now stands at nearly 40 percent, 6.8 percentage points below the peak REO saturation reached during the first quarter of 2009.

Also Thursday, CoreLogic said the nationwide foreclosure rate was 3.61 percent.

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