Foreclosures for Sale, Part 2

Here's an update on my morning post. The folks at Radar Logic were kind enough to provide specific data for the Boston area.

They report that 11.1 percent of sales in Boston in March were "motivated," basically meaning resales of foreclosed properties. That's up from 4.4 percent of sales in March last year.

Mortgage companies increasingly are offering foreclosed homes at sharp discounts, undercutting the market for other homes in the same communities. In Boston, the price per square foot on "motivated sales" dived 19.3 percent in March compared to the same month last year, according to Radar Logic. For other sales, the price decline was only 8.4 percent.

Radar Logic calculates that foreclosures are reselling at an average discount of 40 percent compared to other properties on the market. That's the kind of difference that can make it awfully hard for ordinary sellers to find a buyer.

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