Foreclosure sales pick up

The sales of distressed properties picked up significantly in December, as more first-time homebuyers entered the market during the month.

According to the HousingPulse report from Campbell Surveys and Inside Mortgage Finance, 47.2 percent of home sales during the month involved distressed homes, up from 44.5 percent the previous month near the peak of 47.5 percent from September. The number had slipped in recent months following the robo-signing controversy at many major lenders.

At the same time, the percentage of first-time homebuyers was 37.7 percent, up significantly from a 34.4 percent lull in September and October.

"The combination of increased property supply and growing homebuyer demand caused a blow-out month for home sales," said Thomas Popik, research director for Campbell Surveys. "We knew this was coming because average transactions for our survey respondents rose from 2.9 in November to 3.4 in December."

While foreclosure sales surged on a national level, they remained relatively level locally. According to the Houston Association of Realtors, Houston foreclosures made up 20.1 percent of home sales during the month, roughly the same as previous months.