By Lauren Ratciffe
lratcliffe@scbiznews.com
Published Jan. 26, 2012

Sales involving foreclosure-related properties totaled 10.25% of all sales in South Carolina during the third quarter of 2011, according to new data released by RealtyTrac, a national foreclosure tracking firm.

Focus on real estate Read more about commercial and residential real estate, including a look at distressed properties in 2011, in Monday’s edition of the Charleston Regional Business Journal. To subscribe to the Business Journal, click here.

The average sales price for a home in foreclosure or a bank-owned property was $136,021 in the Palmetto State.

Sales involving foreclosed properties are down from 30% of all sales during the same period last year across the U.S., RealtyTrac reported. Properties in some stage of foreclosure accounted for 20% of all U.S. residential sales in the third quarter of 2011.

Charleston County sold the most foreclosed properties in the Lowcountry, with 228. Greenville topped the Upstate region, selling 254 properties and Richland County sold 185 foreclosure-related properties in the Midlands.

The biggest discount to homebuyers came to those shopping in Richland County. Those homebuyers saw foreclosure-related properties sell at prices 37% lower than non-foreclosure properties.

Nationally, the average sales price for foreclosure-related properties was $165,322, down 3% from the third quarter of 2010. Foreclosure-related properties sold at prices 34% below the average sales price of homes not in foreclosure.

“While foreclosures continue to represent an excellent bargain-buying opportunity for many buyers and investors, foreclosure sales accounted for a smaller share of the total market in the third quarter,” said Brandon Moore, chief executive officer of RealtyTrac.

Moore said the smaller proportion of foreclosure-related sales is related to the confusion about the process involved with selling and buying foreclosed properties. Clarity could come with an expected settlement between states’ attorneys general and major lenders.

“The sooner the market gets more clarity about accepted foreclosure procedures … the sooner the market can more efficiently dispose of these distressed properties,” he said.

Nevada, California and Arizona had the highest percentage of foreclosure sales for the third quarter at 57%, 44% and 43% respectively.

Those states also have the highest number of homes in some state of foreclosure.

Third quarter 2011 foreclosure-related home sales

Region Lowcountry Berkeley Charleston Dorchester Midlands Richland Lexington Calhoun Upstate Anderson Greenville Spartanburg S.C. USA

# Sold 94 228 120 185 98 0 52 254 100 1,712 221,536

Change from Q3 2010 -27.6% -20.8% -3.2% -19.9% -24% -100% -32.5% -30.4% -40.5% -29.8% -4.7%

% of Total Sales 11.34% 12.29% 15.42% 11.12% 10.8% 0 7.95% 13.1% 8.9% 10.25% 20.4%

Price $138,976 $228,911 $129,766 $96,603 $122,623 0 $78,156 $117,091 $101,916 $136,021 $165,322

% Discount 27.9% 28.3% 29% 37.2% 17.1% 0 27.1% 29.2% 29% 27.1% 34%