Thursday, January 5, 2012
Tuesday, January 3, 2012
Distressed Properties Continue to Put Pressure On Home Prices, Latest HousingPulse Finds
Despite solid demand for home purchases overall, a glut of distressed properties is continuing to put downward pressure on home prices, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.
Distressed properties accounted for a hefty 46.1% of home purchase transactions in November as reported in the HousingPulse Distressed Property Index (DPI), using a three-month rolling average. Significantly, November marked the 23rd month in a row that the DPI has been above 40%.
At the same time, however, homebuyer demand for housing appears surprisingly strong, especially for lower-priced foreclosed properties or real estate owned (REO). Time on market for move-in ready REO was just 10.1 weeks in November, the lowest in 15 months, according to HousingPulse. Time on market for damaged REO was even lower at 9.0 weeks in November, also the lowest in 15 months.
Short sales were the largest segment of the distressed property market during the month of November, accounting for 17.6% of total home purchase transactions tracked in the HousingPulse survey. Move-in ready REO was the next largest group of distressed properties with a 15.2% share, followed by damaged REO with a 13.3% share of total transactions. Non-distressed home purchases accounted for the remaining 53.9% of home purchases in November.
Average pricing for distressed property was substantially lower than for non-distressed property. The average short sale sold for $209,200 in November, while the average move-in ready REO sold for $189,700. Damaged REO sold for far lower at $98,600. At the same time, non-distressed properties sold for $258,900.
Despite solid demand for home purchases overall, a glut of distressed properties is continuing to put downward pressure on home prices, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.
Distressed properties accounted for a hefty 46.1% of home purchase transactions in November as reported in the HousingPulse Distressed Property Index (DPI), using a three-month rolling average. Significantly, November marked the 23rd month in a row that the DPI has been above 40%.
At the same time, however, homebuyer demand for housing appears surprisingly strong, especially for lower-priced foreclosed properties or real estate owned (REO). Time on market for move-in ready REO was just 10.1 weeks in November, the lowest in 15 months, according to HousingPulse. Time on market for damaged REO was even lower at 9.0 weeks in November, also the lowest in 15 months.
Short sales were the largest segment of the distressed property market during the month of November, accounting for 17.6% of total home purchase transactions tracked in the HousingPulse survey. Move-in ready REO was the next largest group of distressed properties with a 15.2% share, followed by damaged REO with a 13.3% share of total transactions. Non-distressed home purchases accounted for the remaining 53.9% of home purchases in November.
Average pricing for distressed property was substantially lower than for non-distressed property. The average short sale sold for $209,200 in November, while the average move-in ready REO sold for $189,700. Damaged REO sold for far lower at $98,600. At the same time, non-distressed properties sold for $258,900.
| Residential Real Estate Pricing and Commission Metrics | |||||
| Average Sales to Listing Price Ratio | 2011 Year to Date | ||||
| Region | Damaged REO | Move-In Ready REO | Short Sale | Non- Distressed | |
| AZ & NV | 97% | 99% | 95% | 94% | |
| California | 97% | 99% | 96% | 96% | |
| Farmbelt | 89% | 97% | 92% | 95% | |
| Florida | 94% | 97% | 91% | 93% | |
| Industrial Midwest | 92% | 94% | 91% | 94% | |
| Northeast | 93% | 95% | 92% | 94% | |
| Oil Producing | 90% | 97% | 92% | 96% | |
| Pacific NW | 98% | 95% | 96% | 96% | |
| Rocky Mountain | 91% | 96% | 92% | 95% | |
| South | 89% | 95% | 91% | 95% | |
| National Average | 93% | 96% | 93% | 95% | |
| Average Property Price by Region--Year to Date | ||||
| Region | Damaged REO | Move-In Ready REO | Short Sale | Non- Distressed |
| AZ & NV | $120,003 | $170,303 | $173,001 | $247,834 |
| California | $203,618 | $274,488 | $301,190 | $444,699 |
| Farmbelt | $75,646 | $136,991 | $161,036 | $201,224 |
| Florida | $84,488 | $155,823 | $153,236 | $245,320 |
| Industrial Midwest | $60,639 | $113,306 | $136,641 | $204,813 |
| Northeast | $146,411 | $295,458 | $232,080 | $327,816 |
| Oil Producing | $66,851 | $150,284 | $159,930 | $209,096 |
| Pacific NW | $107,134 | $234,574 | $255,663 | $321,266 |
| Rocky Mountain | $149,109 | $171,828 | $191,836 | $246,136 |
| South | $79,779 | $156,464 | $191,169 | $222,129 |
| National Average | $102,149 | $182,687 | $199,718 | $259,661 |
Courtesy Campbell Surveys
Campbell/Inside Mortgage Finance HousingPulse Tracking Survey
It is based on a national survey of more than 2,500 real estate agents each month and provides up-to-date intelligence on home sales and mortgage usage patterns throughout the United States, broken down by region.
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Housing Trends Update
Housing Trends Update is published monthly and is available only to real estate agents who are part of the Campbell/Inside Mortgage Finance HousingPulse survey panel.
Copyright © 2011 by Campbell Surveys
www.housingpulse.com
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