U.S. Distressed Sales Share Drops To 10-Year Low In Q3 2017

IRVINE, Calif., Nov. 2, 2017 /PRNewswire/ -- ATTOM Data Solutions, curator of the nation's largest multi-sourced property database, today released its Q3 2017 U.S. Home Sales Report, which shows that distressed home sales — including bank-owned (REO) sales, third-party foreclosure auction sales, and short sales — accounted for 12.5 percent of all home sales in Q3 2017, down from 13.5 percent in the previous quarter and down from 14.1 percent in Q3 2016 to the lowest level since Q3 2007.

"Distressed sales nationally are now the exception rather than the rule, and we would expect the distressed sale share to return to the pre-recession norm of single-digit percentages within the next year given the current downward trajectory," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Distressed sales have become more localized in nature, with some of the biggest increases from a year ago in markets experiencing regional economic weakness or a natural disaster event that has triggered a jump in foreclosure activity."

Distressed sales share increases in Corpus Christi, Indianapolis, Cedar Rapids, Baton Rouge
Counter to the national trend, 29 of the 146 metros analyzed for distressed sales (20 percent) posted a year-over-year increase in the share of distressed sales, led by Corpus Christi, Texas (up 33 percent); Indianapolis, Indiana (up 30 percent); Cedar Rapids, Iowa (up 29 percent); Baton Rouge, Louisiana (up 25 percent); Provo, Utah (up 22 percent); and Oklahoma City, Oklahoma (up 22 percent).

Median sales prices exceed pre-recession peaks in 66 percent of local markets
Median home prices in Q3 2017 increased to new all-time highs in 55 of 126 metro areas analyzed for home price appreciation in the report (44 percent), including Los Angeles, Dallas, Atlanta, Detroit and Seattle. Median home prices have exceeded pre-recession peaks since the end of the recession in 83 of the 126 metro areas (66 percent).

Average homeownership tenure, home seller profits reach new record highs in Q3
U.S. homeowners who sold in the third quarter had owned an average of 8.19 years, up from an average of 7.97 years for homes sold in the previous quarter and up from 7.77 years for homes sold in Q3 2016 to a new record high as far back as ATTOM has data available, to Q1 2000.

"The marked increase in the length of time that Seattle homeowners are staying in their homes is notable — in 2000, the average home ownership tenure was 5.5 years and today it is more than a decade," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market. "This would help explain, to a degree, why we are experiencing such a lack of inventory in the Seattle market. I wouldn't be surprised if we saw this number rise further as homeowners choose to stay in their homes and remodel rather than actively compete for a new home."  

Home sellers in Q3 2017 sold for $58,000 more than their original purchase price on average, a percent gain of 31 percent — the highest percent gain since Q2 2007.

Cash sales share increases for second consecutive quarter
All-cash buyers accounted for 27.2 percent of single family home and condo sales in the third quarter, down from 28.2 percent in the previous quarter but up from 26.7 percent in Q3 2016 —the second consecutive quarter with a year-over-year increase following 15 consecutive quarters of decreases.

"Across Southern California, strong home price appreciation and low listing inventory are symptoms of pent-up demand from prospective home buyers wishing to take advantage of the benefits associated with homeownership," said Michael Mahon, president at First Team Real Estate covering the Southern California market. "With cash transactions accounting for nearly one out of five closed escrow transactions within our market, it is clear consumers continue to leverage all-cash offers as a method of offer differentiation."

Institutional investor purchases down for fourth consecutive quarter
Single family home and condo sales sold to institutional investors (entities buying at least 10 properties in a calendar year) represented 2.7 percent of all home sales in the third quarter, down from 2.9 percent in Q3 2016 — the fourth consecutive quarter with a year-over-year decrease.

Full Report & Methodology

About ATTOM Data Solutions
ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties. The ATTOM Data Warehouse delivers actionable including bulk file licenses, APIs and customized reports.

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