Realty Check

Sales of bank-owned homes surge

In this file photo, A bank owned sign hangs outside a home for sale in Las Vegas.
Jacob Kepler | Bloomberg | Getty Images

The steep jump in home prices this year is benefiting the big banks, pushing them to sell their repossessed properties at a faster pace.

Sales of bank-owned (REO) homes accounted for 10 percent of all residential property sales in November, according to RealtyTrac. That is up from 9.1 percent in October and accounted for the third consecutive month of increases in REO sales.

"Lenders are taking advantage of this environment to unload more of their bank-owned inventory and in-foreclosure inventory at the foreclosure auction," said RealtyTrac's Daren Blomquist in a release.

"But as the backlog of distressed inventory available dries up in many of the markets with the most efficient foreclosure processes—namely California, Arizona and Nevada, with Georgia not far behind—overall sales volume is declining and will continue to do so until more nondistressed sellers enter the market."

Related Tags