Foreclosure sales decline 22%

The number of foreclosed sales dropped in the 4th quarter 2010

When looking at just the fourth quarter of 2010, the nation had 149,303 foreclosure sales which is a 22% decline from the third quarter and a 45% drop for year-over-year.

Why the drop?

“Foreclosure sales in the fourth quarter faced the twin headwinds of the expired homebuyer tax credit — which began to stifle sales volume during the third quarter — and the foreclosure documentation controversy, which hit in the fourth quarter and temporarily froze sales of foreclosures from several major lenders,” said James Saccacio, chief executive officer of RealtyTrac.

The catch 22 for 2011

Foreclosure sales are expected to pick up in 2011 — which will be both a blessing and a curse for the housing market. Accelerating foreclosure sales in 2011 will help clear the oversupply of distressed properties, which in the long run will return a market balance. However, in the short term a high percentage of foreclosure sales will continue to weigh down home prices

Ouch.

Reported by Realty Trac

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