and Short Sales Down to 14.3 Percent of U.S Residential
New Analysis Pinpoints Biggest
Distressed Property Discounts Based on Foreclosure Status, Equity, Occupancy
Status, Year Built Range and State
Calif. –June 24, 2014 — RealtyTrac® (www.realtytrac.com), the
nation’s leading source for comprehensive housing data, today released its May
2014 Residential & Foreclosure Sales Report, which shows that U.S.
residential properties, including single family homes, condominiums and
townhomes, sold at an estimated annual pace of 5,147,550 in May, virtually
unchanged from April and an increase of less than 1 percent from May 2013.
median sales price of U.S. residential properties — including both distressed
and non-distressed sales — was $180,000, up 6 percent from the previous month
and up 13 percent from a year ago. The year-over-year increase in May was the
second consecutive month with a double-digit annual increase in U.S. home
prices, and the biggest annual increase since U.S. home prices bottomed out in
The median price of distressed sales — properties
in the foreclosure process or bank-owned — was $120,000, 37 percent below the
median price of non-distressed properties: $190,000. Distressed sales and short
sales combined accounted for 14.3 percent of all U.S. residential sales in May,
down from 15.6 percent of sales in April and down from 15.9 percent of all
sales in May 2013.
“Distressed sales continue to represent a
smaller share of the overall sales pie nationwide, helping to boost median home
prices higher given that distressed sales tend to be in lower price ranges,”
said Daren Blomquist, vice president at RealtyTrac. “When broken down by
average price range, U.S. sales are clearly shifting away from the lower end.
Properties selling below $200,000 represented 50 percent of all sales in May,
but that was down from a 55 percent share a year ago. Meanwhile, the share of
homes selling above $200,000 increased from a 45 percent a year ago to a 50
percent in May 2014.”
Home sales in higher
price ranges represent growing share of market
prices in every price range above $200,000 analyzed in the report increased as
a share of total sales, both from the previous month and from a year ago, with
the increase generally higher in the higher price ranges (see table
The share of home sales in the $200,000 to $300,000
price range increased 2 percent from the previous month and were up 6 percent
from a year ago, but the share of home sales in all price ranges above $750,000
was up more than 20 percent from a year ago.
share of home sales decreased from a year ago in all price ranges below
$200,000, with bigger decreases corresponding to lower price ranges. The share
of homes priced between $100,000 and $200,000 decreased 5 percent from a year
ago, while the share of homes between $50,000 and $100,000 decreased 13 percent
and the share of homes priced below $50,000 — often highly distressed homes —
decreased 22 percent.
Home sales in the $100,000 to $200,000
price range accounted for one-third of all home sales in May — the largest
percentage of any price range — but homes priced between $200,000 and $400,000
were close, accounting for nearly 32 percent of all sales for the month. Sales
of homes priced in the $200,000 to $400,000 range were at their highest
percentage of U.S. home sales since September 2008 — a 68-month
Sales Price Range
of Total Sales May 2014
Change from April 2014
Change from May
>$750K & <=$1MM
Markets with highest
annual home price appreciation
States with the biggest
increases in median prices in May compared to a year ago were New York (up 28
percent), Ohio (up 19 percent), Michigan (up 18 percent), Illinois (up 17
percent), and Georgia (up 16 percent).
Some markets in these
states and others are continuing to see home price appreciation accelerate
compared to last year:
Cleveland: median home prices up 18 percent from year ago
compared to 1 percent annual home price appreciation in May 2013. Second
consecutive month with double-digit increase in home prices.
Ohio: median home prices up 18 percent from year ago compared to 1
percent annual home price decrease in May 2013. Fourth consecutive month with
double-digit increase in home prices.
Akron, Ohio: median home prices up 16 percent from year
ago compared to 4 percent annual home price appreciation in May 2013. Third
consecutive month with double-digit increase in home prices.
- Columbus, Ohio:
median home prices up 13 percent from year ago compared to 3 percent annual
home price decrease in May 2013. Fourth consecutive month with double-digit
increase in home prices.
Austin, Texas: median prices up 11 percent from year ago
compared to 7 percent annual home price appreciation in May 2013. Eight out of
last nine months with double-digit increase in home prices.
Ga.: median home prices up 11 percent from year ago compared to 4
percent annual home price decrease in May 2013.
“Housing demand across Ohio is currently
outpacing supply in many metro areas. As demand remains healthy, we are seeing
home prices rise in many areas year over year, creating a return of equity and
enabling homeowners to now consider placing their homes on the market to take
advantage of low interest rates,” said Michael Mahon, executive vice
president/broker at HER
Realtors, covering the Columbus,
Cincinnati and Dayton, Ohio markets.
is high, concern still remains regarding the lack of available inventory
particularly within the first time homebuyer segment of the market,” Mahon
continued. “Home sellers should consider now an optimal time to review their
financial and housing goals with a real estate agent, and consider taking
advantage of the higher prices they could potentially receive on selling their
home in today’s market.”
Cooling markets for home price
Although home price appreciation
accelerated on a national basis in May, it continued to cool in some markets
with torrid increases in 2013:
Phoenix: median home prices up 6 percent from year ago
compared to 28 percent annual home price appreciation in May 2013. Smallest
annual increase in home prices since February 2012.
Vegas: median home prices up 15 percent from year ago compared to 24
percent annual home price appreciation in May 2013. Smallest annual increase in
home prices since August 2012.
Los Angeles: median home prices up 11 percent from year
ago compared to 27 percent annual home price appreciation in May 2013. Smallest
increase since November 2012.
Denver: median home prices up 7 percent from year ago
compared to 14 percent annual home price appreciation in May 2013. Smallest
increase since April 2012.
Tampa: median home prices up 5 percent from year ago
compared to 23 percent annual home price appreciation in May 2013.
Sales volume decreases
annually in 23 states, 31 of 50 largest metro areas
1 percent increase in U.S. annualized sales in May from a year ago was the
smallest increase in any month so far this year, and the 0.19 increase from the
previous month marked the eighth consecutive month with flat or declining home
sales on a month-over-month basis.
Annualized sales volume in
May decreased from a year ago in 23 states and the District of Columbia, along
31 of the nation’s 50 largest metropolitan statistical
States with decreasing sales volume from a year ago
included California (down 15 percent), Arizona (down 10 percent), Nevada (down
7 percent), Michigan (down 3 percent), and Florida (down 3
Major metro areas with decreasing sales volume from
a year ago included Boston (down 23 percent), Fresno, Calif., (down 22
percent), Orlando (down 18 percent), Los Angeles (down 16 percent), and Phoenix
(down 13 percent).
“Sales continue to be down year over year,
but inventory levels are beginning to climb giving prospective homeowners more
choices to buy within the Southern California market,” said Chris Pollinger,
senior vice president of sales at First
Team Real Estate, covering the Southern California
Highest share of distressed sales in
Las Vegas, Lakeland and Modesto
Short sales and distressed
sales — in foreclosure or bank-owned — accounted for 14.3 percent of all sales
in May, down from 15.6 percent in April and down from 15.9 percent of all sales
in May 2013.
Metro areas with the highest share of combined
short sales and distressed sales were Las Vegas (36.6 percent), Lakeland, Fla.,
(33.3 percent), Modesto, Calif., (31.9 percent), Jacksonville, Fla., (31.7
percent), and Riverside-San Bernardino-Ontario in Southern California (29.3
Short sales nationwide accounted for 4.5 percent of
all sales in May, down from 5.4 percent in April and down from 5.8 percent in
May 2013. Metros with the five highest percentages of short sales in May were
all in Florida: Lakeland (17.7 percent), Orlando (14.9 percent), Tampa-St. Petersburg-Clearwater
(13.4 percent), Palm Bay-Melbourne-Titusville (12.9 percent), and Sarasota
Sales of bank-owned (REO) properties
nationwide accounted for 8.6 percent of all sales in May, down from 9.1 percent
of all sales in April and down from 9.3 percent of all sales in May 2013.
Metros with the highest percentage of REO sales in May were Modesto, Calif.,
(26.7 percent), Riverside-San Bernardino-Ontario (23.3 percent), Las Vegas
(23.1 percent), Stockton, Calif., (21.5 percent), and Bakersfield, Calif. (19.7
Sales at the public foreclosure auction accounted
for 1.2 percent of all sales nationwide in May, up from 1.1 percent of all
sales in April and up from 0.8 percent of all sales in May 2013. Metros with
the highest percentage of foreclosure auction sales in May included Orlando
(3.8 percent), Tampa-St. Petersburg-Clearwater (3.8 percent), Miami (3.7
percent), Indianapolis (3.5 percent), and Lakeland, Fla., (3.4
Biggest distressed discounts on
scheduled auctions, vacant with negative equity
supplement to the May U.S. Residential & Foreclosure Sales Report,
RealtyTrac analyzed residential property sales transactions in the 12 months
ending in March 2014 to pinpoint which types of distressed properties are
selling at the biggest discounts based on foreclosure status, occupancy status,
equity and year built range.
The analysis looked at 24
different distressed property profiles based on these four factors, comparing
the sales price to the estimated full market value for each sale. The final
discount was calculated by comparing the average discount (below market value)
or premium (above market value) for each property profile to the control of
properties not in foreclosure that sold during the same time
Based on this analysis, distressed properties with
the biggest discount were those scheduled for public foreclosure auction that
were vacant, had negative equity and were built between 1950 and 1990.
Properties in this category sold for an average discount that was 28 percent
below the control group of non-distressed sales.
distressed property profiles with discounts among the top five nationwide were
- Properties in default with
positive equity (26 percent discount)
in default with negative equity, vacant and built in 1950 or before (26 percent
- Properties scheduled for foreclosure
auction with negative equity and vacant (25 percent
- Properties scheduled for foreclosure
auction and vacant (25 percent).
properties selling at a premium
The analysis found
that not all distressed properties sold at a big discount, and in some cases
even sold at a premium above non-distressed properties. Bank-owned properties
overall sold at a 3 percent premium, while bank-owned properties built in 1950
or before sold at a 7 percent premium.
of bank-owned homes sold at a discount. Bank-owned properties that were
confirmed vacant — without the former homeowner or tenant still living there —
sold at an 18 percent discount below the non-distressed control, and bank-owned
properties that sold after 1990 and between 1950 and 1990 also sold at slight
Properties with negative equity that were not in
foreclosure or bank owned sold at a substantial premium of 19 percent above the
control of all properties with no foreclosure status.
distressed discounts vary by state
The analysis also
found the property profiles with the biggest discounts — and the discounts
available — varied significantly by state. Below are the distressed property
profiles with the biggest available discounts for select
- California: scheduled for foreclosure
auction with positive equity (17 percent discount)
- Florida: scheduled for foreclosure auction with negative equity,
vacant and built between 1950 and 1990 (29 percent
- Ohio: in default, negative equity,
vacant and built between 1950 and 1990 (34 percent
- Michigan: in default and vacant (34
- New York: scheduled for foreclosure
auction with negative equity and vacant (38 percent discount)
The RealtyTrac U.S. Residential &
Foreclosure Sales Report provides counts and median prices for sales of
residential properties nationwide, by state and metropolitan statistical areas
with a population of 500,000 or more. Data is also available at the county
level upon request. The report also provides a breakdown of short sales, bank-owned
sales and foreclosure auction sales to third parties. The data is derived from
recorded sales deeds and loan data, which is used to determine cash sales and
short sales. Sales counts for recent months are projected based on seasonality
and expected number of sales records for those months that are not yet
available from public record sources but will be in the future given historical
patterns. Statistics for previous months are revised when each new monthly
report is issued as more deed data becomes available for those previous
property sales: sales of single family homes,
condominiums/townhomes, and co-ops, not including multi-family properties.
sales: an annualized estimate of the number of residential property
sales based on the actual number of sales deeds received for the month,
accounting for expected sales records for that month that will be received in
future months as well as seasonality.
sales: sale of a residential property that is actively in the
foreclosure process or bank-owned when the sale is
percentage difference between the median price of distressed sales
and a non-distressed sales in a given geographic
Bank-Owned sales: sales of
residential properties that have been foreclosed on and are owned by the
foreclosing lender (bank).
sales of residential properties where the sale price is below the combined
total of outstanding mortgages secured by the
Foreclosure Auction sales:
sale of a property at the public foreclosure auction to a third
party buyer that is not the foreclosing lender.