Distressed properties in the first quarter sold at a pace 8.3 percent higher than during the previous quarter. A recent study by the National Association of Realtors reported that previously owned homes sold at the annual rate of 5.14 million units during the first quarter of 2011, an impressive 8.3 percent growth quarter-over-quarter.
Sales of distressed properties (REO and Short Sales) as a percentage of total market sales grew from 36 percent the prior year to 39 percent by quarter’s end. The trend was recorded in 49 of 50 states and includes the District of Columbia. The State of Vermont was the “outlier” with a reported 7.1 percent decline in sales of existing homes.
Average home prices declined from $166,400 in Q1 of 2010, to $158,700 in Q1 of 2011. The 4.6 percent price decline has sparked an uptick in sales.
The mix of home buyers included these categories: repeat buyers, 47 percent; first-time home buyers, 32 percent; and investors, 21 percent. The presence of “cash purchasers” grew from 27 percent to 33 percent quarter-over-quarter.