Share of All Cash Sales Reaches New High in November, REO Sales Share Increases for Third Consecutive Month

Annualized Sales Volume Down from Year Ago in 14 of 50 Largest Metros
Institutional Investor Share Highest in Columbus, Phoenix, Atlanta, Jacksonville

IRVINE, Calif. – Dec. 18, 2013 —
RealtyTrac® (www.realtytrac.com), the
nation’s leading source for comprehensive housing data, today released its
November 2013 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 5,146,565 in November, a
less than 1 percent increase from a revised pace of 5,128,034 in October and up
10 percent from November 2012.

Annualized sale volume
declined from the previous month in 18 states and was down from a year ago in
four states: California (down 14 percent), Arizona (down 12 percent), Nevada
(down 9 percent), and Rhode Island (down 4 percent). Annualized sales volume
declined from a year ago in 14 of the nation’s 50 largest metros, including
seven California metros, two metros in both Arizona and New York, along with
Las Vegas, New Haven, Conn., and Portland, Ore.

The national
median sales price of all residential properties — including both distressed
and non-distressed sales — was $169,000 in November, up 1 percent from October
and up 7 percent from November 2012, the 19th consecutive month median home
prices have increased on an annualized basis.

The median
price of a distressed residential property — in foreclosure or bank owned — was
$110,500 in November, 39 percent below the median price of $181,500 for a
non-distressed residential property.

“The housing market
recovery continued to be driven by investors and other cash purchasers in
November,” said Daren Blomquist, vice president at RealtyTrac. “Lenders are
taking advantage of this environment to unload more of their bank-owned
inventory and in-foreclosure inventory at the foreclosure auction. But as the
backlog of distressed inventory available dries up in many of the markets with
the most efficient foreclosure processes — namely California, Arizona and
Nevada, with Georgia not far behind — overall sales volume is declining and
will continue to do so until more non-distressed sellers enter the
market.”

Other high-level
findings from the report:

  • All-cash purchases accounted for 42.0
    percent of all residential property sales in November, up from 38.8 percent in
    October and also up from a year ago to the highest level since RealtyTrac began
    tracking all-cash purchases in January
    2011.
  • States with the highest
    percentage of cash sales were Florida (62.7 percent), Georgia (51.3 percent),
    Nevada (51.0 percent), South Carolina (50.3 percent), and Michigan (49.0
    percent).
  • Institutional
    investor purchases represented 7.7 percent of all residential property sales in
    November, up from 7.1 percent in October and up from 6.3 percent a year
    ago.
  • Markets with the highest share
    of institutional investor purchases included Columbus, Ohio, Phoenix, Atlanta,
    Jacksonville, Fla., and Cape Coral-Fort Myers, Fla.
  • Sales of bank-owned
    homes (REO) accounted for 10.0 percent of all residential property sales in November,
    up from 9.1 percent in October and 9.4 percent a year ago. November marked the
    third consecutive month where REO sales increased from the previous
    month.
  • Metro areas where REO sales
    accounted for at least 20 percent of all sales and increased from a year ago
    included Stockton, Calif., Las Vegas, Cleveland, Riverside-San Bernardino,
    Calif., and Phoenix.
  • Sales
    to third-party investors at the foreclosure auction represented 1.3 percent of
    all residential property sales in November, up from 0.8 percent of sales in
    both the previous month and a year ago to the highest level since RealtyTrac
    began tracking third party foreclosure auction sales in January
    2011.
  • Metro areas with the
    highest share of third party foreclosure auction sales were Miami (4.0
    percent), Atlanta (3.9 percent), Jacksonville, Fla. (3.9 percent), Orlando (3.6
    percent), and Las Vegas (3.6 percent).
  • Short sales represented
    5.6 percent of all residential property sales in November, up from 5.4 percent
    the previous month but down from 6.5 percent in November
    2012.
  • States with the highest
    percentage of short sales were Nevada (16.6 percent), Florida (14.2 percent),
    Illinois (8.8 percent), Maryland (8.6 percent) and New Jersey (7.1 percent).
  • Markets with the biggest
    annual increase in median prices included Detroit (up 39 percent), Sacramento
    (up 30 percent), Atlanta (up 28 percent), and San Francisco (up 27
    percent).

Local broker
quotes

“Currently about 85 percent of the Reno housing market has returned back to equity sales,” said Craig King, COO at Chase International brokerage, covering the Reno, Nev., and Lake Tahoe markets. “Nevada was one of the very first markets into the housing debacle and we seem to be one of the first ones out.”

“Housing inventory in some middle Tennessee markets
are down compared to this time last year,” said Bob Parks, CEO of Bob
Parks Realty
, covering the Nashville and middle Tennessee
market. “But our home sales are still increasing at a gradual rate
and the overall housing market is quite positive.”

“Available
housing inventory is low across much of Ohio, marking a time when many should
consider selling properties instead of waiting for the spring market,” said
Michael Mahon, executive vice president/broker for HER
Realtors
, covering the Cincinnati, Columbus and Dayton, OH
markets.  “With the onset of the Dodd-Frank legislation going into
effect January 2014, as well as uncertainty about interest rates for 2014, it
is an equally opportunistic time for buyers to consider making a home
purchase.”

“Credit tightening will occur in January 2014 due
to the Dodd-Frank legislation, which I expect will cause home sales to decrease
marginally,” said Sheldon Detrick, CEO of Prudential
Detrick/Alliance Realty
, covering the Oklahoma City and Tulsa, OK
markets.  “This legislation is positive for the long term to ensure we
don’t experience another big home default mess, but I hope this is the last
tightening we experience because as the lenders continue to tighten their loan
criteria, it will begin to have a detrimental effect on the housing market and
in turn the economy.”

“We are experiencing normal seasonal
trends in home sales in the Northern Utah market,” said Steve Roney, CEO of
Prudential
Utah Real Estate
, covering the Salt Lake City and Park City, UT
markets. “Despite the slower seasonal months, it’s clear that we are
back to a ‘normal’ housing
market.”

Median Sales Prices in Major Metros

 

Major Metros Monthly Property Sales

Report
methodology

The RealtyTrac U.S. Residential 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 cash sales, institutional investor sales,
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.

Important methodology note:
Starting with this October report, RealtyTrac has adjusted the
methodology for the report as it concerns short sales — now applying a refined
calculation to take into account the true loan balance secured by a home at the
time of the sale, and additionally separating out of the short sale classification
properties that sell at the public foreclosure auction short of the loan
balance.

Related to this second change, RealtyTrac is now
including a new category of distressed sale in the report: third-party
foreclosure auction sales, which represent sales at the public foreclosure
auction to third parties other than the foreclosing lender.

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.

All-cash
purchases
: sales where no loan is recorded at the time of sale and
where RealtyTrac has coverage of loan
data.

Institutional investor purchases:
residential property sales to non-lending entities that purchased at least 10
properties in the last 12 months.

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.

Data
Licensing and Custom Report Order

Investors,
businesses and government institutions can contact RealtyTrac to license bulk
foreclosure and neighborhood data or purchase customized reports. For more
information contact our Data Licensing Department at 800.462.5193 or datasales@realtytrac.com.

About
RealtyTrac Inc.

RealtyTrac (www.realtytrac.com) is the
leading supplier of U.S. real estate data, with more than 1.5 million active
default, foreclosure
auction and bank-owned
properties, and more than 1 million active for-sale listings on its website,
which also provides essential housing information for more than 100 million
homes nationwide. This information includes property characteristics, tax assessor
records, bankruptcy status and sales history, along with 20 categories of key
housing-related facts provided by RealtyTrac’s wholly-owned subsidiary, Homefacts®.
RealtyTrac’s foreclosure
reports
and other housing data are relied on by the Federal Reserve,
U.S. Treasury Department, HUD, numerous state housing and banking departments,
investment funds as well as millions of real estate professionals and
consumers, to help evaluate housing trends and make informed decisions about
real estate.

Media
Contacts:

Jennifer von Pohlmann
949.502.8300,
ext. 139
jennifer.vonpohlmann@realtytrac.com

Brittney
Marin
949.502.8300, ext. 107
brittney.marin@realtytrac.com

Data and Report
Licensing:

800.462.5193
datasales@realtytrac.com

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