IRVINE, Calif. – Nov. 3, 2016 – ATTOM Data Solutions' latest study for the third quarter finds that distressed sales – bank-owned (REO) sales, sales of homes actively in foreclosure and short sales – accounted for 12.9 percent of all U.S. single family home and condo sales in Q3 2016, a drop from 15 percent in the previous quarter and 15.9 percent year-to-year.
Nationwide, distressed sales hit its lowest percentage in nine years – since the third quarter of 2007 – and they're now far below the peak number of 43.9 percent in the first quarter of 2009.
However, distressed sales still play a role in Florida. ATTOM reports that five of the nation's top 15 cities for distressed sales are located in the Sunshine State, with Lakeland-Winter Haven No. 4 at 20.1 percent. Other Florida cities where distressed sales make up at least 15 percent of all sales are Orlando, Miami, Tampa and Jacksonville.
"Distressed inventory for sale is virtually non-existent in many of the nation's hottest housing markets, and when a distressed property is listed for sale in those markets it often sells quickly and at little or no discount," says Daren Blomquist, senior vice president at ATTOM Data Solutions. "The scarcity of discounted distressed inventory is chasing away cash buyers and other bargain hunters, but it's certainly good news for home sellers, who nationwide realized the biggest home price gains since purchase in nine years.
Year-to-year price increases
In one category studied by ATTOM – the year-over-year increase in median sales prices – Florida cities ranked in four of the top five spots: Jacksonville (prices rose 24 percent), Tampa-St. Petersburg (up 17 percent), Palm Bay-Melbourne-Titusville (up 17 percent), Chicago (up 17 percent) and Pensacola (up 15 percent).
Blomquist says seller prices gains have started to "wane in some of the highest-priced markets where appreciation is beginning to cool, indicating those markets are past their prime as sellers' markets." However, he still sees "a number of buyers' markets across the country where a high level of lingering distress and relatively weak demand from owner-occupant buyers provides investors with plenty of bargain-buying opportunities."
Cash sales
ATTOM also found a significant drop in cash sales nationwide, which also hit a nine-year low. Again, however, Florida bucked the trend.
Among metropolitan statistical areas with at least 1,000 single-family and condo home sales in the third quarter of 2016, those with the highest share of all-cash purchases were Raleigh, N.C. (53.1 percent), Miami (45.8 percent); Naples (45.2 percent); Ocala (44.9 percent) and North Port-Sarasota-Bradenton (43.2 percent).
Report highlights
Related Topics: Foreclosures
Nationwide, distressed sales hit its lowest percentage in nine years – since the third quarter of 2007 – and they're now far below the peak number of 43.9 percent in the first quarter of 2009.
However, distressed sales still play a role in Florida. ATTOM reports that five of the nation's top 15 cities for distressed sales are located in the Sunshine State, with Lakeland-Winter Haven No. 4 at 20.1 percent. Other Florida cities where distressed sales make up at least 15 percent of all sales are Orlando, Miami, Tampa and Jacksonville.
"Distressed inventory for sale is virtually non-existent in many of the nation's hottest housing markets, and when a distressed property is listed for sale in those markets it often sells quickly and at little or no discount," says Daren Blomquist, senior vice president at ATTOM Data Solutions. "The scarcity of discounted distressed inventory is chasing away cash buyers and other bargain hunters, but it's certainly good news for home sellers, who nationwide realized the biggest home price gains since purchase in nine years.
Year-to-year price increases
In one category studied by ATTOM – the year-over-year increase in median sales prices – Florida cities ranked in four of the top five spots: Jacksonville (prices rose 24 percent), Tampa-St. Petersburg (up 17 percent), Palm Bay-Melbourne-Titusville (up 17 percent), Chicago (up 17 percent) and Pensacola (up 15 percent).
Blomquist says seller prices gains have started to "wane in some of the highest-priced markets where appreciation is beginning to cool, indicating those markets are past their prime as sellers' markets." However, he still sees "a number of buyers' markets across the country where a high level of lingering distress and relatively weak demand from owner-occupant buyers provides investors with plenty of bargain-buying opportunities."
Cash sales
ATTOM also found a significant drop in cash sales nationwide, which also hit a nine-year low. Again, however, Florida bucked the trend.
Among metropolitan statistical areas with at least 1,000 single-family and condo home sales in the third quarter of 2016, those with the highest share of all-cash purchases were Raleigh, N.C. (53.1 percent), Miami (45.8 percent); Naples (45.2 percent); Ocala (44.9 percent) and North Port-Sarasota-Bradenton (43.2 percent).
Report highlights
- Buyer price gains in two top markets – San Francisco and San Jose – appear to have peaked in the second quarter and have since declined. Five other cities outside Florida also saw home value declines.
- The number of FHA-backed home purchases declined for the second quarter in a row. Nationwide, FHA mortgages accounted for 15.9 percent of all single family and condo home sales in the third quarter, down from 16.1 percent in the second quarter and from 16.7 percent a year ago.
- Purchases by institutional investors (entities that purchase at least 10 homes in a calendar year) appear to be increasing after dropping for 11 quarters. As a percentage of U.S. buyers, they've now increased for the past two quarters, accounting for 2.7 percent of all single family and condo home sales in the third quarter, up from 2.6 percent in the previous quarter and from 2.2 percent a year ago.
- Of the top five U.S. cities for institutional investors, one Florida city makes the list. In Lakeland-Winter Haven, institutional buyers made up 7.5 percent of the market in the third quarter.
Related Topics: Foreclosures