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And -- the government wasted your money taxpayer dollars trying to prop up the housing market.
-- this foreclosures making up 31% of all home sales in the first quarter according to a new report from realty track.
And they went for well below properties not in foreclosures so what does this large number of homes on the market.
From foreclosures -- doing to the housing recovery why isn't it recovering.
With all the money that the government -- in joining me now -- -- -- Fox Business interview.
-- senior vice realty track Rick it's always terrific to see.
Number it's a stunning number but is actually a slight improvement from recent quarter.
Well we we probably peaked about a year ago 37%.
But but -- keep it in historical perspective in a normal market we'd be looking at one to 2% of all sales being foreclosure sales of 31% is still off the -- Do you expected to go higher from here what will it stabilize and though and I think that band of say 25 to 35%.
Yet we finished last year overall with about 29% of sales being foreclosures.
And and we think probably for the foreseeable future we're gonna stabilized in in that -- you talked about between 25 and 35%.
Is is still so high though.
With everything and just looking at what the government programs trying to keep people in their homes.
Are you shocked that it's been at this sustained high level.
Not exactly shocked I mean that the two drivers really are massive inventory we have.
Over 900000 -- homes there's one point two million homes in foreclosure.
And and there's probably unprecedented interest among the buying public.
These these homes are very affordable properties for the most part and -- first time homebuyers and investors gobbling them up assumes that the market.
So there is interest out there but with the flood of foreclosures onto the market.
Is the inventory of them still rising that the supply continues to outstrip even the very heavy demand.
That's a great question and in fact.
In the first quarter we set new record for the number of sacred possessions there were over a quarter million new -- -- possessions in that quarter.
In the same time period we've sold 233000.
Of those foreclosure properties so we're still creating distressed properties more quickly -- the market is absorbing them.
-- what about though the prices.
Of these properties and where they are selling.
-- is your average time that's not a foreclosure sale.
How -- a discount are we talking about is that discount actually narrowed with buyer interest.
-- the discounts pretty significant you're looking computing nationally about 27% discount.
Compared to home sales that -- in foreclosure.
The average sale price is about a 171000.
There are some states where that this cancer significantly.
Illinois in in Kentucky and Ohio you have -- 39% average discount.
-- -- the discounts vary by state but they're they're pretty significant -- pretty real and again that's why these houses are attractive to people.
-- one last thing in terms of these numbers and what you see ahead what does that mean for the overall housing market.
Depressed prices for some time and the depressed sales potentially.
I think we've had sort of an equilibrium point right now where there's just enough to -- it distressed assets on the market.
-- to keep prices from going up.
If we saw the inventory levels above bank properties go up too much more -- start to see prices come back down.
But our our most likely scenarios we have another three years until the housing market really recovers and any meaningful way.
Rick great to say thank you for -- here in explaining at all rich target senior vice president with realty track.
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