Wilbur Ross quits Ocwen Financial

Wilbur Ross quits Ocwen Financial

Distressed asset investor bringing his magic to Bank of Cyprus

Dustin Johnson levels blockbuster claims at title attorneys

Is Nat Hardwick the fall guy?

CFPB proposes 7 big changes to foreclosure process for mortgage servicers

Adds guidance on extended borrower protections
W S

Why did residential sales decline for fourth month straight?

Distressed sales down, investor activity wanes

empty register
/ Print / Reprints /
| Share More
/ Text Size+

Residential properties sold at an estimated annual pace of 5,083,241 in February, a 0.2% decline from January but up 7% from February 2013, according to the latest report from RealtyTrac.

February marked the fourth consecutive month where sales activity has fell on a monthly basis. This includes single-family homes, condominiums and townhomes.

There were monthly declines in 31 states, and year-over-year declines in six – including Massachusetts, California, Arizona and Nevada. Twenty-one of the nation’s largest 50 metropolitan areas likewise suffered sales volume declines, including Phoenix, Orlando, Las Vegas and Detroit, among others.

“Supply and demand have reached a bit of a standoff in this uneven real estate recovery,” said Daren Blomquist, vice president at RealtyTrac. “The supply of distressed properties — which buyers and investors have come to rely on over the past few years — is evaporating quickly in most markets, but that dwindling supply is not being adequately replenished by non-distressed homeowners listing their homes or by new homes being built.”

Blomquist noted that some of the volume decline is from institutional investors, a primary driver over the past two years. Investor activity has declined in the last several months.

“It’s not yet clear if that diminishing demand will be filled by first-time homebuyers and move-up buyers,” he said.

 The national median sales price of U.S. residential properties — including both distressed and non-distressed sales — was $164,667 in February, down 1% from the previous month but up 4% from February 2013. February marked the 20th consecutive month where the U.S. median price increased or stayed flat annually, but it was the second consecutive month with a monthly decrease.

Distressed sales and short sales account for 17% of all sales in February

Short sales and distressed sales — in foreclosure or bank-owned — accounted for 16.9% of all sales in February, up from 16.1% of sales in January but down from 19.1% of sales in February 2013. The median price of distressed properties — in foreclosure or bank-owned — was $96,606 in February, 44% below the median price of non-distressed properties: $172,339.

Short sales nationwide accounted for 5.7% of all sales, up from 5.5% in January but down from 6.9% a year ago. Metro areas with the highest percentage of short sales included Las Vegas (17.0%), Orlando (16.8%), Tampa (14.9%), Memphis (14.5%), and Miami (12.3%). The percentage of short sales decreased from a year ago in all of these metros. 

Recent Articles by Trey Garrison

Comments powered by Disqus