Good news for neighborhoods! Foreclosures are at the lowest level since Nov. 2009 according to the latest data from RealtyTrac. The company released its May 2015 “U.S. Home & Foreclosure Sales Report” last week, and all-cash sales have dropped almost 4 percent from April of this year to 24.6 percent.
“The cash sales share in May was close to its long-term average going back to January 2000 of 24.8 percent and well below its recent peak of 42.2 percent in February 2011. The share of institutional investors — entities purchasing at least 10 properties in a calendar month — dropped to 2.4 percent of single family home sales in May, a record low going back to January 2000, the earliest month with data available.”
Speaking of institutional investors, San Antonio is being swarmed with cash sales and institutional investors, according to the report. In the Alamo city institutional investor purchases accounted for 8.4 percent of transactions for May.
The top five metro areas with a population of at least 200,000 with the highest share of institutional investor purchases were Rockford, Illinois (13.4 percent), Tulsa, Oklahoma (12.6 percent), Roanoke, Virginia (12.6 percent), Memphis, Tennessee (10.2 percent), and San Antonio, Texas (8.4 percent).
“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,” said RealtyTrac Vice President Daren 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.”
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