Foreclosure sales dropped in 2012

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IRVINE, Calif., Feb. 28 (UPI) -- The number of U.S. homes in foreclosure sold in 2012 dropped 6 percent from the previous year, online marketplace RealtyTrac reported Thursday.

There were 947,995 properties in foreclosure sold in 2012, the firm said.

The year marks the second consecutive year of declines. The figure is 11 percent lower than the number of foreclosed properties sold in 2011.

Homes sold in pre-foreclosure transactions rose 6 percent from 2011 to 2012, while sales of bank-owned homes fell 15 percent.

"Although foreclosure-related sales represent a shrinking share of total sales, primarily because of fewer bank-owned purchases, distressed sales are still a disproportionately high portion of the overall housing market," Daren Blomquist, vice president of RealtyTrac said in a statement.

"And while distressed properties -- whether bank-owned, pre-foreclosure or short sales not in foreclosure -- are still selling at a significant discount compared to non-distressed properties, average distressed property prices are increasing in many markets thanks to strong demand and limited inventory," he said.