[IMGCAP(1)]

|

IRVINE, CA—“Distressed salescontinue to represent a smaller share of the overall sales pienationwide, helping to boost median home prices higher given thatdistressed sales tend to be in lower price ranges,” according toDaren Blomquist, VP ofRealtyTrac. The firm reports that distressed andshort sales were doen to 14.3% of US residentialsales in May, down from 15.6% in April and down from 15.9% in May2013.

|

As GlobeSt.com reported earlier this week, USresidential properties, including single-familyhomes, condominiums and townhomes, sold at an estimated annual paceof nearly 5.2 million in May, a number that is virtually the sameas April and representing an increase of less than 1% from May2013, according to a report fromRealtyTrac. However, median home pricesincreased 6% in May as compared to April and rose 13% from May2013, representing the biggest annual increase since US home pricesbottomed out in March 2012.

|

Metro areas with the highest share of combined shortsales and distressed sales were Las Vegas; Lakeland, FL;Modesto, CA; Jacksonville, FL; and Riverside-San Bernardino-Ontarioin Southern California. Also, distressed properties with thebiggest discounts were those scheduled for public foreclosureaution that were vacant, had negative equity and were built between1950 and 1990. Properties in this category sold for an averagediscount that was 28% below the control group of non-distressedsales.

|

However, this discount was not across the board for alldistressed properties. RealtyTrac reports that bank-ownedproperties overall sold at a 3% premium, while bank-ownedproperties built in 1950 or before sold at a 7% premium. Propertyprofiles with the biggest discounts—and the discountsavailable—also varied significantly by state, with the largestdiscounts in New York (properties scheduled for foreclosure auctionwith negative equity and vacant), Ohio (properties in default, withnegative equity, vacant and built between 1950 and 1990), Michigan(properties in default and vacant), Florida (properties scheduledfor foreclosure auction with negative equity, vacant and builtbetween 1950 and 1990) and California (properties scheduled forforeclosure auction with positive equity).

|

[IMGCAP(2)]

|

[IMGCAP(3)]

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.