More than two of every three Merced County homes sold this year have been either bank owned or "short sales" to avoid foreclosure, just-released statistics show.
That's more than double the national average, and it demonstrates how foreclosures continue to dominate the region's real estate market.
Merced, San Joaquin, Stanislaus and Imperial counties had the highest percentage of bank-owned and preforeclosure sales in California. And California had the second-highest percentage of such foreclosure sales in the nation, surpassed only by Nevada.
The new data -- released Wednesday by RealtyTrac -- analyzed homes sold during January, February and March.
The Northern San Joaquin Valley has led the nation in foreclosures for three years, and those repossessed homes have pulled down all property values.
RealtyTrac calculated that foreclosure properties nationwide sold for about 27 percent less than regular houses.
But there was only a 9 percent price difference in Stanislaus between foreclosure properties and those purchased from owners who were not in mortgage trouble. That's evidence of how foreclosures have reduced home values throughout the entire region.
Bank-owned homes and those in mortgage default typically are priced lower because their owners are motivated to sell quickly, and often foreclosure homes are damaged or have maintenance problems.
"First-time homebuyers and investors continue to buy foreclosure properties in large numbers, and at substantial discounts," said James Saccacio, RealtyTrac's chief executive officer.
Saccacio said lenders this year have been repossessing record levels of American homes.
"It will be interesting to watch how they will manage the inventory levels of distressed properties on the market in order to prevent more dramatic price deterioration," Saccacio said.
Here are some additional RealtyTrac statistics for the first quarter of 2010:
Stanislaus County -- There were 1,177 bank-owned properties sold for an average $141,594, which was 10 percent less than homes that were not at risk of foreclosure.
Another 461 homes were purchased through "short sales" to enable their previous owner to avoid foreclosure. The average price of those short sale homes was $146,749, which was 7 percent less than homes that were not facing foreclosure.
Merced County -- There were 579 bank-owned homes sold for an average $116,216, and 217 short sales for an average $120,589.
San Joaquin County -- There were 1,493 bank-owned homes sold for an average $160,768, and 797 short sales for an average $178,550.
More detailed statistics about foreclosure sales are posted with this story on www.modbee.com.
Modesto Bee reporter J.N. Sbranti can be reached at jnsbranti@modbee.com or 578-2196.
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