I always like to compare the sales data between regular resales and distressed property sales due to the recent popularity of bank owned homes and distressed properties. Everyone is looking for a deal. I pulled the numbers for the first quarter of this year to compare.
From January 1 through March 31, 2010 . . . . .
Regular Home Sale Transactions
- 2939 homes were sold that were not labeled foreclosures.
- The
average size home was 2190 square feet and sold for $116/sqft
- That equates to an average sales price of $259,345
- The average final sales price to original list price was 93.8%
- These houses sold in an average of 78 days
Foreclosure Transactions
- 518 foreclosed homes were sold via central Texas MLS
- The average size home was 2023 square feet and sold for $74/sqft
- That equates to an average sales price of $148,873
- These houses sold in an average of 41 days
- The average final sales price to original list price was 92.7%
Short Sale Transactions
- 44 short sales were completed according to the MLS system
- The average size home was 2424 square feet and sold for $81/sqft
- That equates to an average sales price of $198,908
- These houses sold in an average of 95 days
- The average final sales price to original list price was 93.4%
Yes, the difference in the price per square footage numbers between regular and distressed properties is significant. However, you have to consider the fact that the bulk of the foreclosures that are sold via MLS are usually located in areas further outside the Austin city limits. As such, property values are lower to begin with.
The majority of the prime foreclosure properties with the better yields and higher property value are sold at the foreclosure proceedings at the court house steps. Also consider that these resale numbers include new construction home which on average sell for a higher price per square foot.
Still, if you are not afraid of getting your hands dirty and taking a little bit of risk, foreclosure still offer a great opportunity to some.
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