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|New Study Investigates Residential Real Estate Foreclosures|
- Correlation Between Percentage of Foreclosure Sales and Depth of Discounts Revealed -
ANAHEIM, Calif., Oct. 28 /PRNewswire-FirstCall/ -- First American Real Estate Solutions (RES(R)), the nation's largest provider of advanced property and ownership information, analytics and services, released a new study today that investigates the prevalence of foreclosure sales and the depth of discounts in 629 counties in 36 states, including the District of Columbia.
Entitled "Residential Foreclosures: The Prevalence, the Power and the Opportunity," the study by Christopher Cagan, Ph.D., director of research and analytics at First American Real Estate Solutions, quantifies the correlation between foreclosures as a percentage of total sales and the size of the discount buyers typically receive when purchasing foreclosure properties.
For example, in Maricopa County, Ariz., where foreclosure sales accounted for 1.6 percent of total sales during the first half of 2005, the median discount was 6.3 percent. Whereas in St. Louis, Mo., foreclosures made up 7.9 percent of sales for the same time period, with a median discount of 29.5 percent.
"The prevalence of foreclosures and the depth of discounts are sensitive indicators of the present and future state of a real estate market, regardless of geographic location or market type," said Cagan.
Among the areas with few foreclosure sales and little or no foreclosure discounts during the first half of 2005 were California, the District of Columbia, Hawaii, New Mexico, Virginia, Nevada, Florida and Arizona. States where foreclosures were most prevalent and discounts were deepest included Michigan, Missouri, New York, Ohio, South Carolina and Tennessee.
"Our clients are seeking advanced analytics to respond to trends, often in multiple markets," said George Livermore, president of The First American Corporation's Property Information and Services Group. "This comprehensive, nationwide analysis helps businesses identify areas where foreclosures are more frequent, and that helps them make more informed decisions."
During the last decade, First American RES has compiled the nation's largest database of property information and today utilizes it in conjunction with proprietary processes to improve operational efficiency and deliver new analytical products and services to its clients.
Access to an electronic copy of the study is available at www.firstamres.com. For more information or to arrange an interview with Dr. Cagan, please call (714) 701-3265.
First American RES, a member of The First American Family of Companies, is the nation's largest provider of advanced property and ownership information, analytics and services. First American RES' database covers more than 2,500 counties representing 97 percent of the nation's real estate transactions. With more than 600,000 users nationwide, First American RES products are used by companies to improve customer acquisition and retention, detect and prevent fraud, improve mortgage transaction cycle time and cost efficiency, measure the value of residential and commercial properties, identify real estate trends and neighborhood characteristics, track market performance and increase market share. More information about First American RES can be found on the Internet at www.firstamres.com.
The First American Corporation (NYSE: FAF), a FORTUNE 500(R) company that traces its history to 1889, is the nation's largest data provider. First American combines advanced analytics with its vast data resources to supply businesses and consumers with valuable information products to support the major economic events of people's lives, such as getting a job, renting an apartment, buying a car or house, securing a mortgage and opening or buying a business. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within six primary business segments, including: Title Insurance and Services, Specialty Insurance, Mortgage Information, Property Information, Credit Information and Screening Information. With revenues of $6.72 billion in 2004, First American has approximately 2,000 offices throughout the United States and abroad. More information about the company and an archive of its press releases can be found at www.firstam.com.
SOURCE The First American Corporation