McGraw VP, Luke Strawn, Discusses Tulsa Forclosure

Foreclosed Home Sales Drop 32 Percent

Foreclosures made up 13.75 percent of all Tulsa area home sales in 2010, a new report indicates.

While the estimated 1,160 sales of foreclosed homes may seem high, it’s a drop of 32 percent from 2009 and 38 percent from 2008, according to real estate data firm RealtyTrac Inc.
The average 2010 sales price of a Tulsa area foreclosed home was $102,807, according to the report, or 32 percent lower than other homes.

Luke Strawn, senior vice president of McGraw Realtors, said he anticipates the number of foreclosed homes on the market to remain high for some time. “There’s still a lot of shadow inventory out there,” he said. “The banks still have properties that will be on the market that haven’t hit yet.”

Still, Tulsa has a lot fewer foreclosures than the nation as a whole. RealtyTrac estimated the national proportion of foreclosed properties among homes sold was 28.1 percent in 2010, down 31.1 percent from 2009 and 13.3 from 2008.

However, the national average sales price of a foreclosed home, $172,030, was 28.1 percent off the price of a regular home – less of a discount than foreclosed homes in Tulsa.

Strawn said multiple factors cause the discounts. “It may be a situation where the bank is motivated to move the property, but more often than not it’s the repairs that are needed,” he said.

Repairs aside, Strawn said more and more Tulsans are specifically looking for foreclosed homes, based on the inquiries McGraw is receiving. He warned that foreclosed homes have potential obstacles for buyers beyond deferred maintenance. “They can be more difficult to sell,” Strawn said. “In many cases, negotiating with the bank can be difficult.”

Original Print Headline: Sales of foreclosed homes fall 32 percent across metro Tulsa
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