TOP MARKETS FOR REOs

[James Wise]

The Top Markets for REOs Right Now

Daily Real Estate News | Tuesday, June 16, 2015

U.S. bank repossessions rose 25 percent in April, reaching a 27-month high, according to RealtyTrac's U.S. Foreclosure Market report.

"This actually may be good news for an inventory-starved housing market, especially since these REOs are selling more quickly and almost at full market value in many markets," according to RealtyTrac’s report.

REOs sold in the first quarter nationwide, on average, in 243 days (which includes from bank repossession to closing), according to RealtyTrac’s report. Also, REOs sold on average for 87 percent of full market value, up from 84 percent a year ago.

The top five markets where REOs are selling closest to their market value:

1. San Diego, Calif.: 100% (average REO sale price percent of full market value)
2. Charlotte, N.C.: 100%
3. San Francisco, Calif.: 97%
4. Bakersfield, Calif.: 97%
5. Portland, Ore.: 97%

In these markets, REOs are selling the fastest times:

1. Kansas City, Mo.: 80 (the average days to sell REO)
2. New York, N.Y.: 128 days
3. Columbus, Ohio: 150 days
4. Cleveland, Ohio: 151 days
5. Tampa, Fla.: 154 days

Combined, however, the following markets are seeing properties sell for the fastest and highest percentage of market value:

• San Diego, Calif.

Average REO sales price percent of full market value: 100%

Average days to sell: 236 days

• Charlotte, N.C.

Average sale price of full market value: 100%

Average days to sell: 162 days

• Bakersfield, Calif.

Average sales price of full market value: 97%

Average days to sell: 190 days

• New York, N.Y.

Average sales price of full market value: 94%

Average days to sell: 128 days

• Riverside-San Bernadino-Ontario, Calif.

Average sales price of full market value: 93%

Average days to sell: 211 days