Tri-Cities cash homes sales down, higher share than the nation


Tri-Cities all-cash home sales were down in all but three counties in May compared to May last year.  Case sales were a higher portion than the rest of the nation in all but three local counties.

InvestorsAccording to CoreLogic’s May Home & Foreclosure Sales Report, Washington counties TN and VA were the only counties with institutional investor sales – three in Washington Co. TN and one in Washington Co. VA. In the non-institutional category all-cash sales totaled 196 compared to 244 last year. The report defines institutional investors as those who have bought at least 10 single-family properties in the calendar month. Nationwide institutional purchases dropped to 2.4% in May, a record low going back to January 2000, the earliest month with data available.

May2REO sales as a portion of all sales declined dramatically across the Tri-Cities while the share of in-foreclosure sales saw significant increases three counties. In-foreclosure sales are properties sold while in the foreclosure process — but not yet bank-owned. This can include sales of properties that have received a notice of trustee sale, which have increased dramatically in the Tri-Cities this year. Many lenders have new programs that work with mortgage holders so that they do not lose their home to foreclosure. The number or portion of sales in that program is not tracked by the report.


 

Jan.- May Tri-Cities Notice of Trustee Sales up 245% 


 

“Distressed sales in May represented a significantly smaller share of a growing home sales pie as an increasing number of non-distressed sellers Maycontinued to cash out on the equity they’ve gained over the last three years of rising home prices,” said Daren Blomquist, vice president at RealtyTrac. “But those distressed sales are still acting as a drag on home prices, selling at a median price that is 43% below the median price of a non-distressed sale — the biggest gap we’ve seen since we began tracking that distressed discount in January 2006.

“As housing transitions from an investor-driven, cash-is-king market to one more dependent on traditional buyers, sales volume has been increasing over the last few months and is on track in 2015 to hit the highest level we’ve seen since 2006,” Blomquist continued. “And while sellers this spring are realizing the biggest average equity gains since 2006, home price appreciation is softening as the supply-and-demand balances tip more in favor of buyers and as banks began to clear out some of their more highly distressed foreclosures that sell at scratch-and-dent prices.”

Share of distressed sales drops to new low

The share of distressed sales dropped to a new low of 10.5 percent in May, down from 15.4 percent in April and down from 18.3 percent a year ago to the lowest level since January 2011 — the earliest that RealtyTrac has data for this metric.

Locally, distressed sales and the region’s foreclosure rates at pre-recession levels


 

Tri-Cities foreclosure, delinquent mortgage rates continue trending lower 


 

Report methodology

The RealtyTrac U.S. Home Sales & Foreclosure Report provides median sales prices of distressed and non-distressed homes, along with percentages of distressed sales and all sales that are sold to investors, institutional investors and cash buyers. The data are derived from recorded sales deeds, foreclosure filings and loan data. Statistics for previous quarters are revised when each new quarterly report is issued as more deed data becomes available for those previous months.

Definitions

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 a calendar year.

Distressed sale: a sale of a property that occurs while the property is actively in some stage of foreclosure (NOD, LIS, NTS, NFS or REO). This includes only sales to third-party buyers or investors not involved in the foreclosure process. It does not include property transfers from the owner in default to the foreclosing bank or lender.

REO sale: a sale of a property that occurs while the property is actively bank owned (REO).

In-foreclosure sale: a sale of a property that occurs while the property is actively in default (NOD, LIS) or scheduled for foreclosure auction (NTS, NFS).

The full RealtyTrac report with state charts can be found by CLICKING HERE

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