Foreclosures and bank-owned properties made up a significant portion of the housing market in the second quarter of this year.
New numbers from RealtyTrac show sales of bank-owned homes and homes in some stage of foreclosure accounted for 31 percent of all U.S. residential sales between April and June of this year. That's up from 24 percent of all sales during the same period last year.
Comparatively, Minnesota is in slightly better shape. Bank-owned homes and homes in foreclosure made up almost 25 percent of all sales in the second quarter, Daren Blomquist of RealtyTrac said.
"(Sales are) a little bit lower than the national average, but still it's well above what we'd expect to see in a normal healthy market," Blomquist said. "We expect to see five percent or lower of the sales being distressed sales like that."
The average sales price for bank owned homes or homes in foreclosure was 32 percent below the average sales price of homes not in foreclosure.
"We are not really at the recovery stage yet," Blomquist said. "But the prices are having to come down, which speaks to the fact that there is still very weak demand for these properties."