It shouldn’t surprise, but it still does: In Michigan, foreclosures (in some form or another, including pre-foreclosures) and bank-owned properties accounted for a staggering 40% of all residential real estate sales in the quarter ending June 30, 2011.
In a report published by RealtyTrac, an online marketplace for foreclosures, the average foreclosure in Michigan sold for $70,765, a hefty 40% discount off the State average. Bank-owned buyers did even better, getting close to a 46% discount. And pre-foreclosure sales—sales that occur while the property is actively in default, scheduled for foreclosure auction, or short sales—were discounted nearly 14%.
Closer to home, distressed buyers in Kent County paid $66,416, a 41% discount off the County’s average sales price.
Oddly enough, we’re in contract to buy our first non-distressed property in nearly five years. More on that buy in future posts.