According to Auction.com’s Q4 2020 Distressed Market Outlook, distressed property demand reached record highs in 2020, even as a building backlog of foreclosures could exceed 1 million by Q2 2021.
Foreclosure volume rebounded to a six-month high in September, while foreclosure sales rates, price execution, price per square foot, and bidding competitions for REO auctions all saw record highs in 2020.
“Foreclosure supply is slowly returning to the market as servicers refine their vacant or abandoned procedures and as states gradually open up,” said Ali Haralson, Chief Business Development Officer, Auction.com. “These vacant or abandoned properties, which are exempt from the national foreclosure moratoria on government-backed mortgages, benefit neighborhoods when they are returned to occupancy.”
Other critical findings in the report include:
- How vacant “zombie” foreclosures helped fuel a rebound in foreclosure volume
- The top 5 states with the most foreclosure volume
- The average price per square foot for REOs sold via online auction
- And much more
The 2020 Distressed Market Outlook analyzes proprietary data from properties brought to foreclosure auction via the Auction.com platform and public record real estate data.