Do REO/Foreclosure sales make it into the data series used to calculate median sales prices? Or perhaps some do and some don’t?
I’m curious because I know that a lot of builder sales don’t make it into the stats, although virtually all MLS sales (which are mostly re-sales) do. So, I was wondering whether or not the Bank-owned foreclosure (and auction?) sales make it into the data.
I’d think it would be in the banks’ best interests not to report these sales since the majority of the sales will probably be at some discount to prevailing market rates (whether 2% or 10%) thus putting further pressure on whatever other inventory they’ve got.
I’ve asked a few banker friends, but none of their banks make SFR loans. Any thoughts?
Davelj it all depends. I am not entirely sure all of the sources that dataquick uses. If the REO was listed on the MLS then it absolutely would make it into the stats. When you say foreclosure do you mean when title reverted back to the lender because nobody bid at the trustee sale? Sorry for not knowing. Go to the dataquick website and I bet there is a contact number or send them email. I am sure they will tell ya.
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