All the Real Estate News That’s Fit to RE-Print™
Welcome to our weekly edition of Real Estate Investing News This Week. Highlights this week include:
- Home prices up 11%
- All-cash purchases climb to 42.7%
- Mortgage delinquency rate drops again
We hope these real estate news items help you stay up-to-date with your real estate investing strategies and inspire some profitable real estate deals for you.
On Tuesday, CoreLogic® released its March CoreLogic Home Price Index report. Home prices nationwide, including distressed sales, increased 11.1 percent in March 2014 compared to March 2013.
This change represents 25 months of consecutive year-over-year increases in home prices nationally.
- Including distressed sales, the five states with the highest home price appreciation were California (+17.2 percent), Nevada (+15.5 percent), Georgia (+12.4 percent), Hawaii (+12.3 percent) and Oregon (+12.2 percent).
- Excluding distressed sales, the five states with the highest home price appreciation were California (+13.2 percent), Nevada (+11.8 percent), Florida (+10.9 percent), Maine (+10.6 percent) and Hawaii (+10.6 percent).
- Including distressed transactions, the peak-to-current change in the national Home Price Index (from April 2006 to March 2014) was -16.0 percent. Excluding distressed transactions, the peak-to-current change in the Home Price Index for the same period was -11.6 percent.
On Monday, RealtyTrac® released its Q1 2014 U.S. Institutional Investor & Cash Sales Report, which shows the share of all-cash sales reached a new high in the first quarter even as the share of institutional investor purchases dropped to the lowest level since the first quarter of 2012.
The report shows 42.7 percent of all U.S. residential property sales in the first quarter were all-cash purchases, up from 37.8 percent in the previous quarter and up from 19.1 percent in the first quarter of 2013 to the highest level since RealtyTrac began tracking all-cash purchases in the first quarter of 2011.
Institutional investors — entities that have purchased at least 10 properties in a calendar year — accounted for 5.6 percent of all U.S. residential sales in the first quarter, down from 6.8 percent in the fourth quarter of 2013 and down from 7.0 percent in the first quarter of 2013 to the lowest level since the first quarter of 2012.
Cash sales more than half of all sales in Miami, New York, Detroit, Atlanta, Las Vegas
Among metropolitan statistical areas with a population of at least 500,000, those with the top five highest percentages of cash sales were all in Florida: Cape Coral-Fort Myers, (73.6 percent), Miami (67.1 percent), Sarasota, (65.1 percent), Palm Bay, (64.1 percent), and Lakeland, (61.8 percent).
Other major metro areas with more than 50 percent all-cash sales included New York (57.0 percent), Columbia, S.C., (56.1 percent), Memphis (54.9 percent), Detroit (53.5 percent), Atlanta (53.2 percent) and Las Vegas (52.2 percent).
Other high-level findings from cash purchases data:
- 15 percent of all-cash purchases in the first quarter were properties in the foreclosure process, and 10 percent were bank-owned properties.
- 11 percent of all-cash purchases in the first quarter were to institutional investors, investors buying at least 10 properties in a calendar year.
- 52 percent of all-cash purchases in March (most recent month’s data only available for this metric) were sold to buyers with a different mailing address than the property address — indicating investors or second-home buyers. That compares to 34 percent of all sales — cash and financed — sold to investors or second-home buyers in March.
- The average sales price of an all-cash purchase in the first quarter was $207,668 — 13 percent below the average estimated full market value of the properties that were purchased: $237,900.
TransUnion reports that the national mortgage delinquency rate (the rate of borrowers 60 or more days past due) dropped for the ninth consecutive quarter, declining to 3.61% in Q1 2014.
The mortgage delinquency rate has now dropped 24% in the last year.
Highest mortgage delinquency rates: Florida (7.64%), New Jersey (6.84%), and Nevada (6.11%).
Lowest mortgage delinquency rates: North Dakota (1.08%), South Dakota (1.44%), and Nebraska (1.60%).