Foreclosures Account for 10% of 3Q Home Sales in Louisiana

Foreclosed homes accounted for about 10% of all homes sold in Louisiana in the third quarter ending September. This is according to data released by a national Real Estate tracking firm. According to the report, up to 534 houses (all in different stages of the foreclosure process) were sold in the state. The stages of foreclosure ranged from initial notices of default to actual repossession by lenders.

In the same period, the average price tag of foreclosure homes sold in Louisiana stood at $135,784. The figure was lower than the national average of $169,523. The average price in the state comprised an average discount price of about 28.3% from price tags for homes that are not in foreclosure. Homes that were repossessed by banks were disposed at a discount average of 33.9%. Homes that were not repossessed by a bank, but were in default, had an average discount of about 16.4%.

The volume of home sale transactions involving foreclosed homes in the state fell 29.2% compared to the sales in the second quarter and dropped 18.6% compared to figures in the same quarter last year. Some analysts interpret this information as a positive sign, because it might indicate an improving condition of foreclosure in Louisiana.

Market observers note that the decline in foreclosure sales in the state is not unique to Louisiana. Foreclosure sales have also been declining in many other states as foreclosures get a chill due to the recent scandal that rocked mortgage lenders regarding their foreclosure procedures. They added that it could also be attributed to the expiration in April of a homebuyer tax credit program.

Analysts expect the volume of foreclosures and sale of foreclosed homes to drop continuously in the coming quarters. This is again attributable to the lasting impact of the foreclosure processing controversy, which has been affecting lenders’ activities, mortgage refinance transactions, and overall consumer sentiments toward home purchasing.

On the national level, foreclosed homes accounted for about 25% of total residential home sales in the third quarter. Up to 188,748 homes were sold in the country in the period. Foreclosed homes were 113,933, lower by 25% compared to the second quarter and 31% lower compared to the same period last year.

Meanwhile, foreclosure homes constituting sales were the highest in Nevada (54%). The second highest was in Arizona (47%) and the third was in California (40%).

 For more news on the foreclosure housing market, visit ForeclosureConnections.com.