Home » NEWS » FNC releases statistics on market distress

FNC releases statistics on market distress

OXFORD — Mortgage technology company FNC Inc. has released statistics that pinpoint 2008 and 2009 as the years that saw the worst market distress, with more than 25 percent of foreclosed properties liquidated at more than a 40 percent discount.

Other facts from the study show that in 2010, while the bottom quartile continued to experience large price discounts, there were signs of modest improvement in the remaining three-fourths of the foreclosure sales.

Ohio tops the nation in market distress — three of its major metropolitan cities are ranked among the most distressed markets, averaging more than 42 percent price discounts in foreclosure sales. Among the top 30 metropolitan statistical areas (MSAs) that make up the FNC 30-MSA Composite Residential Price Index, six key California markets incurred the smallest foreclosure discounts in 2010.

“Existing measures of foreclosure discount simply report the ratio of average liquidating price of foreclosed properties to average sales price of non-distressed sales,” says Yanling Mayer, senior research economist at FNC. “While useful as a general indicator of market distress, the foreclosure discount computed as such cannot be used reliably to measure the impact of market distress on the final liquidating price of foreclosed homes. Foreclosure and non-foreclosure sales samples are generally not comparable because of the differences in size, non-size physical attributes and conditions, neighborhoods, etc.”


… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Wally Northway

One comment

Leave a Reply

Your email address will not be published. Required fields are marked *