Sales of Foreclosed Homes in Tri-State, Ohio Drop

Strategic homebuyers and investors could expect price markdowns again when they buy foreclosed homes in the Tri-State area and in the state of Ohio. That is because there were fewer foreclosed homes that were actually sold in such areas during the period, according to third-quarter figures recently released by a realty tracking firm.

Up to 1,094 foreclosures in Tri-State (comprising of population-dense areas of New York, New Jersey, and Connecticut) were sold from July until September of this year. That was lower compared to the actual sales of 1,179 foreclosed homes in the same quarter last year.

On the national level, there were 188,748 foreclosures that were sold across the entire US in third quarter. Foreclosed homes accounted for about 25% or a quarter of total US residential homes that were sold in the period.

Sales of foreclosed properties fell in many states and metropolitan centers in the country. Market analysts attributed the decline to the impact of an expired homebuyer tax credit to consumers’ home purchasing mood. Some even assert that a temporarily halt in mortgage banks’ foreclosure activities contributed to the drop.

However, when sales of foreclosed properties slow down, actual buyers get bigger discounts. In fact, buyers of foreclosed homes in third quarter were able to enjoy an average price markdown of more than 32%. Analysts note that it was the highest average discount for foreclosed homes sales since the last quarter of 2005.

Meanwhile, in Ohio, almost all the counties in the state observed a decline in sales of foreclosed homes. In Hamilton County, sales of foreclosed properties fell by up to 38% compared to sales in the second quarter. The market sold 327 foreclosed homes at an average tag price of about $88,829. It was a 49% average discount.

Foreclosed homes sale also fell drastically in other Ohio counties. In Butler, it dropped 23.5%; in Clermont, it decreased by 23.5% as well, and in Warren, foreclosure sales slowed by 25.45%.

Meanwhile, in Kentucky, sales of foreclosed properties also fell in most counties except for Boone County, where sales jumped to more than 200%. It bolstered foreclosure in Northern Kentucky. Foreclosed property sales fell almost 52% in Campbell and just 14% in Kenton.

For more news and information about foreclosures across the country, visit ForeclosureConnections.com. The online site is regularly posting updated news about the industry.