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How bad is the California economy? Foreclosed home sales are one fourth the sales of all homes in the State.
"Foreclosure homes accounted for 24 percent of all residential sales in the nation in the second quarter of 2010 and the average sales price of properties that sold while in some stage of foreclosure was more than 26 percent below the average sales price of properties not in the foreclosure process, according to a report from RealtyTrac Inc., an Irvine-based foreclosure information company.
A total of 248,534 U.S. properties in some stage of foreclosure -- default, scheduled for auction or bank-owned (REO) -- sold to third parties in the second quarter, an increase of nearly 5 percent from the previous quarter, but still down 20 percent from the second quarter of 2009, says RealtyTrac.
"While foreclosure sales increased in the second quarter, non-foreclosure sales increased even more, spurred on by the homebuyer tax credit that expired during the quarter," says James Saccacio, chief executive officer of RealtyTrac. "That had the net effect of lowering foreclosure sales as a percentage of total sales during the quarter, but that may be a temporary dip as the removal of the tax credit could drive more buyers back to discounted short sales and REOs."
Only the use of borrowed Federal dollars called tax credits have helped the sales. Bottom line, tax policy, environmental policy, a legislature and Governor refusing to pass a budget, all add up for the California Depression to continue for a full generation.
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"Foreclosure homes accounted for 24 percent of all residential sales in the nation in the second quarter of 2010 and the average sales price of properties that sold while in some stage of foreclosure was more than 26 percent below the average sales price of properties not in the foreclosure process, according to a report from RealtyTrac Inc., an Irvine-based foreclosure information company.
A total of 248,534 U.S. properties in some stage of foreclosure -- default, scheduled for auction or bank-owned (REO) -- sold to third parties in the second quarter, an increase of nearly 5 percent from the previous quarter, but still down 20 percent from the second quarter of 2009, says RealtyTrac.
"While foreclosure sales increased in the second quarter, non-foreclosure sales increased even more, spurred on by the homebuyer tax credit that expired during the quarter," says James Saccacio, chief executive officer of RealtyTrac. "That had the net effect of lowering foreclosure sales as a percentage of total sales during the quarter, but that may be a temporary dip as the removal of the tax credit could drive more buyers back to discounted short sales and REOs."
Only the use of borrowed Federal dollars called tax credits have helped the sales. Bottom line, tax policy, environmental policy, a legislature and Governor refusing to pass a budget, all add up for the California Depression to continue for a full generation.
More...