HOME PRICE APPRECIATION SLOWS IN 65 PERCENT OF HOUSING MARKETS IN JULY COMPARED TO A YEAR AGO

Distressed Sales
and Short Sales Down to 13.6 Percent of All
Sales;

U.S. Home Sales Volume Down From
Year Ago for Third Straight Month

IRVINE,
Calif. –Aug. 28, 2014 —
RealtyTrac® (www.realtytrac.com), the
nation’s leading source for comprehensive housing data, today released its July
2014 U.S 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 4,634,513 in July, down 3
percent from the previous month and down 12 percent from a year ago — the third
consecutive month where annualized sales volume has decreased on a
year-over-year basis.

The median price of U.S.
residential properties sold in July — including both distressed and
non-distressed sales — was $191,000, up 3 percent from the previous month, and
up 12 percent from a year ago to the highest level since September 2008, a
70-month high.

“As distressed sales continue to decline, the
share of sales is tilting toward more expensive homes, boosting the nationwide
median sales price,” said Daren Blomquist, vice president of RealtyTrac. “The
nationwide home price increase, however, masks slowing home price appreciation
in the majority of housing markets across the country. This slowing
appreciation was expected and provides another sign that the real estate
recovery thus far is behaving rationally. Still, the housing market is entering
a dicey transition phase where it is becoming much more reliant on first-time
homebuyers and move-up buyers to sustain the recovery as investor involvement
wanes.”

Other high-level
findings:

  • Properties selling in
    the $200,000-and-below price range accounted for 49 percent of all sales in
    July, down from 52 percent of all sales a year ago, while properties selling
    above $200,000 accounted for 51 percent of all sales in July, up from 48
    percent of all sales a year ago (see table below for more detailed breakdown by
    price range).
  • States with
    the biggest annual increase in median sales prices were Michigan (24 percent
    increase), Ohio (20 percent increase), Virginia (20 percent increase),
    Minnesota (14 percent increase), and New York (13 percent
    increase).
  • Metros with the biggest annual
    increase in median sales price included Detroit (up 33 percent), Dayton, Ohio
    (up 31 percent), Stockton, Calif., (up 24 percent), Modesto, Calif., (up 22
    percent), Cleveland (up 20 percent), and Miami (up 19 percent).
  • Among 183 metropolitan
    statistical areas with a population of 200,000 or more and with sufficient
    sales data, 119 (65 percent) saw lower annual home price appreciation in July
    2014 compared to July 2013.
  • Markets
    where annual home price appreciation in July 2014 dropped to single digits from
    double digits a year ago included San Francisco, San Diego, Los Angeles,
    Chicago, Portland, Denver and Phoenix.
  • Out of the 183 major
    markets, 18 (10 percent) reached new median home price peaks in the last two
    months, including Denver, San Jose, Calif., Columbus, Ohio, Charlotte, N.C.,
    Austin, Texas, Nashville, Tenn., and Oklahoma
    City.
  • The median price of U.S.
    distressed sales — properties in the foreclosure process or bank-owned — was
    $128,000 in July, up 3 percent from the previous month and up 11 percent from a
    year ago, but still 37 percent below the median price of non-distressed sales:
    $204,000.

Local broker
insights

“Coastal areas in Southern California that
were first to rebound from the distressed-heavy market last year are slowing to
more long-term sustainable growth,” said Chris Pollinger, senior vice president
of sales at First
Team Real Estate
, covering the Southern California
market
.  “Other areas have finally worked through their
distressed inventory and are seeing significant price increases while the pent
up demand for new inventory by inventors, flippers and prospective home buyers
is prevalent.”

“The Seattle housing market continues to
perform strongly thanks in large part to the health of our local economy, while
our biggest challenge is the supply of homes available to buyers,” said OB Jacobi,
president of Windermere
Real Estate
, covering the Seattle
market
.  “In Seattle we currently have about one
month’s supply of inventory compared to a healthy market that should have four to
six months.  The result is a highly charged, highly competitive
housing market where many homes are drawing multiple offers and selling for
well above list price.

“At the same time, the double-digit
price increases we saw in months past have slowed somewhat, which is actually a
good thing because as history has taught us, this kind of sustained
appreciation can lead to boom and bust cycles that none of us want to relive,”
Jacobi added.

“The Denver housing market experienced
its typical end-of-summer lull, however, homes under $300,000 are still moving
rapidly, many with multiple offers,” said Phil Shell, managing broker at RE/MAX
Alliance
, covering the Denver
market
.  “The overall market is not as frantic as it
was during spring of this year but it is still brisk, and pricing is becoming
more important when listing a property as the overpriced inventory is sitting
for longer periods of time.”

California
and Florida markets post highest distressed sale
share

Short sales and distressed sales — in foreclosure
or bank-owned — accounted for 13.6 percent of all single family and condo sales
in July, up from 12.8 percent in June but down from 15.0 percent in July
2013.

Markets with the highest share of distressed sales and
short sales combined were Las Vegas (40.3 percent), Stockton, Calif., (39.9
percent), Modesto, Calif. (33.4 percent), Lakeland, Fla., (30.6 percent), and
Cape Coral-Fort Myers, Fla., (27.9 percent).

Markets bucking
the national trend with a year-over-year increase in share of distressed sales
and short sales combined included New Haven, Conn., Louisville, Ky., Boston,
Youngstown, Ohio and Des Moines, Iowa.

Short
sales increase from previous month but still down from year
ago

Short sales accounted for 4.5 percent of all single
family and condo sales in July, up from 3.5 percent in the previous month but
down from 5.2 percent a year ago.

Markets with the highest
share of short sales in July were Lakeland, Fla., (14.3 percent), Orlando,
Fla., (13.7 percent), Las Vegas (13.1 percent), Tampa (12.5 percent), Cape
Coral-Fort Myers, Fla., (12.3 percent).

Markets bucking the
national trend with a year-over-year increase in share of short sales included
Little Rock, Ark., Albany, N.Y., Chicago, Virginia Beach, Va., and
Cleveland.

Oklahoma City, Des Moines, San
Diego, Boston see increasing REO sales share

Bank-owned
(REO) sales accounted for 8.0 percent of all single family and condo sales in
July, down from 8.1 percent in the previous month and down from 9.1 percent a
year ago to the lowest level since January 2011.

Markets with
the highest share of bank-owned sales in July were Stockton, Calif., (30.3
percent), Modesto, Calif., (25.3 percent), Las Vegas (24.7 percent),
Bakersfield, Calif., (20.0 percent), and Riverside-San Bernardino, Calif.,
(19.4 percent).

Markets bucking the national trend with a year-over-year
increase in share of REO sales included New Haven, Conn., Des Moines, Oklahoma
City, Louisville, Ky., Boston, Stockton, Calif., San Jose, Calif., and San
Diego.

Miami, Orlando,
Atlanta among markets with highest share of foreclosure
auctions

Sales at the foreclosure auction accounted for
1.2 percent of all single family and condo sales in July, up from 1.1 percent
in June and up from 0.8 percent in July 2013.

Markets with
the highest share of auction sales in July were Miami (4.6 percent), Lakeland,
Fla., (4.3 percent), Orlando, Fla., (3.8 percent), Lancaster, Pa., (3.4
percent), and Atlanta (3.2 percent).

Markets bucking the
national trend with a year-over-year decrease in share of auction sales
included Sacramento, Calif., Portland, Ore., Tucson, Ariz., Bakersfield,
Calif., and Seattle.

Report methodology
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
months.

Definitions
Residential
property sales
: sales of single family homes, condominiums/townhomes,
and co-ops, not including multi-family
properties.

Annualized 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.

Distressed sales: sale of a
residential property that is actively in the foreclosure process or bank-owned
when the sale is recorded.

Distressed discount:
percentage difference between the median price of distressed sales
and a non-distressed sales in a given geographic
area.

Bank-Owned sales: sales of
residential properties that have been foreclosed on and are owned by the foreclosing
lender (bank).

Short sales: sales of
residential properties where the sale price is below the combined total of
outstanding mortgages secured by the
property.

Foreclosure Auction sales:
sale of a property at the public foreclosure auction to a third
party buyer that is not the foreclosing
lender.

Report
License

The RealtyTrac U.S.
Residential & Foreclosure Sales report is the result of a proprietary
evaluation of information compiled by RealtyTrac; the report and any of the
information in whole or in part can only be quoted, copied, published,
re-published, distributed and/or re-distributed or used in any manner if the
user specifically references RealtyTrac as the source for said report and/or
any of the information set forth within the
report.

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