Cash buyers rock Tri-Cities Aug. sales, FHA sales up, most markets on record pace

Tri-Cities cash buyers continued rocking the local housing market in August.

According to RealtyTrac’s current Home Sales Report, local cash buyers claimed a higher share of sales than the national average.

Aug cash salesGreene and Unicoi counties saw the highest cash sales share – slightly over half of last month’s sales. Those two counties were also the only ones where August’s share of cash sales was higher than August last year.

Sullivan, Washington Co. TN and Unicoi were the only counties where the share of cash sales increased from July.

Sullivan and Washington counties were also the top locations for distressed sales. Sullivan had eight REO sales and 10 in-foreclosure sales while Washington Co. recorded three REO sales and 16 in-foreclosure sales. Unicoi saw one REO sales and three in-foreclosure sales.

RealtyTrac’s methodology defines a distressed sale as “a sale of a property that occurs while the property is actively in some state of foreclosure. This includes only sales to third-party buyers or investors not involved in the foreclosure process. It does not include property transfers from the owners in default to the foreclosing bank or lender.”

Missing from August’s cash sales numbers were institutional investors – “residential property sales to non-lending entities that purchased at least 10 properties in a calendar year.”

Aug FHA salesAugust’s report also looked at FHA insured sales and illustrates how much their share has increased since the same month last year.

Hawkins was the only county where share of local FHA sales was greater than the national share, and Greene Co. was the only local county where the share decreased from August last year.

The report also shows single family home and condo sales through August were on pace for an eight-year high nationwide and in 110 out of 204 (54%) metropolitan statistical areas with sufficient sales data.

NETAR and RealtyTrac data show the Johnson City MSA is among those on pace for an eight-year sales high. Kingsport-Bristol is 0.9% off that pace due to soft sales in the SW Va. portions of the MSA. Sullivan and Hawkins counties are currently at a seven-year record levels.

“The continued strength in sales volume across a wide spectrum of markets in August indicates that shock waves from recent global stock market instability have not weakened the housing recovery and in fact there is evidence that the instability has fueled more demand for U.S. real estate,” said Daren Blomquist, vice president of RealtyTrac. “The share of cash sales nationwide in August bounced back from a seven-year low in July, and the month-over-month increase in cash sales share was more pronounced in markets that have traditionally been magnets for foreign cash buyers, including Boston, Las Vegas, San Francisco, Seattle and New York.”



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