PrintSmall investors aren’t the only ones pulling back from buying in a real estate economy where soaring prices are crimping their profits. Despite their bigger pockets, hedge funds are slowing down as well.
Institutional investor purchases (sales to investors that purchased at least 10 properties in the last 12 months) accounted for 9 percent of all residential sales in June, up from 8 percent of all sales in May but down from 10 percent of all sales in June 2012. States with the highest percentage of institutional investor sales included Georgia (23 percent), Nevada (16 percent), Arizona (15 percent), Oklahoma (13 percent), North Carolina (12 percent), and Florida (12 percent) according to RealtyTrac, which today released its first-ever U.S. Residential Sales Report.
All-cash purchases, a barometer of investor activity, accounted for 30 percent of all sales in June, down from 31 percent of all sales in the previous month and a year ago. Metro areas with higher percentages of cash sales included Cape Coral-Fort Myers, Fla. (70 percent), Miami (64 percent), Las Vegas (62 percent), Sarasota, Fla. (59 percent), Tampa, Fla. (58 percent), and Detroit (56 percent).
Sales of bank-owned properties (REO) accounted for 9 percent of all residential sales in June, down from 10 percent in May 2013 and on par with a year ago. Metro areas where REO sales accounted for higher percentages of total sales included Detroit (24 percent), Modesto, Calif. (24 percent), Stockton, Calif. (24 percent), Las Vegas (22 percent), and Akron, Ohio (21 percent).
Short sales (where the sale price is below the combined total of outstanding mortgages secured by the property) accounted for 14 percent of all residential sales in June, down from 15 percent in May but up from 8 percent a year ago. States with the highest percentage of short sales in June included Nevada (30 percent), Florida (29 percent), Maryland (21 percent), Tennessee (19 percent), and Arizona (19 percent).
Metro areas with annual increases in median prices of 20 percent or more included Sacramento, Calif. (35 percent), San Francisco (30 percent), Los Angeles (27 percent), Las Vegas (26 percent), and Phoenix (25 percent).
States with the biggest distressed sale discount included Ohio (58 percent), Michigan (48 percent), Illinois (47 percent), Massachusetts (46 percent), and Wisconsin (45 percent).
“The U.S. housing market is slowly but surely moving toward a more normalized and sustainable pattern after a flurry of institutional and cash buyers flocked to residential real estate last year, pushing up prices and picking clean the best inventory available in many areas,” said Daren Blomquist, vice president at RealtyTrac. “Rising home values should continue to unlock more non-distressed inventory while also pricing institutional investors out of more markets, which, combined with rising interest rates, will cool off the pace of price appreciation.
“Still, lingering distressed inventory in many markets will continue to provide fodder for institutional investors and cash buyers in those markets,” Blomquist continued. “Markets where sales increased in June tend to be in states with that lingering distressed inventory, whereas markets where sales decreased tend to be in states that more quickly absorbed distressed inventory thanks to a relatively fast foreclosure process and strong demand.”
The report also shows a national median sales price of $168,000 for the month, up 3 percent from the previous month and up 5 percent from a year ago. The median price of a distressed sale - in foreclosure or bank owned - was $120,000, 34 percent below the median price of a non-distressed sale ($181,500).
Report methodology
The RealtyTrac U.S. Residential Sales Report provides counts and median prices for sales of residential properties nationwide, by state and metropolitan statistical areas with a population of 500,000 or more. Data is also available at the county level upon request. The report also provides a breakdown of cash sales, institutional investor sales, short sales and bank-owned sales. The data is derived from recorded sales deeds and loan data, which is used to determine cash sales and short sales. Sales counts for recent months are projected based on seasonality and expected number of sales records for those months that are not yet available from public record sources but will be in the future given historical patterns.
Residential Sales Counts & Median Prices by State -June 2013
|
State |
Annualized Sales |
%? from May 2013 |
%? from Jun 2012 |
Median Sales Price |
%? from May 2013 |
%? from Jun 2012 |
Distressed Discount% |
| U.S. Total |
5,320,381 |
2% |
8% |
$168,000 |
3% |
5% |
34% |
| Alabama |
38,289 |
5% |
-27% |
$122,930 |
7% |
12% |
41% |
| Arkansas |
30,517 |
4% |
15% |
$121,000 |
-2% |
-6% |
25% |
| Arizona |
186,114 |
-1% |
-13% |
$165,000 |
3% |
22% |
21% |
| California |
585,283 |
0% |
-19% |
$325,000 |
3% |
27% |
34% |
| Colorado |
133,781 |
3% |
1% |
$228,000 |
3% |
9% |
32% |
| Connecticut |
27,243 |
1% |
13% |
$204,500 |
5% |
-5% |
38% |
| District of Columbia |
9,994 |
7% |
19% |
$460,000 |
2% |
8% |
54% |
| Delaware |
15,387 |
0% |
-2% |
$180,000 |
3% |
-7% |
44% |
| Florida |
617,796 |
2% |
17% |
$129,900 |
4% |
13% |
33% |
| Georgia |
195,735 |
2% |
-5% |
$124,000 |
6% |
14% |
30% |
| Hawaii |
20,125 |
5% |
-6% |
$400,995 |
-4% |
4% |
36% |
| Iowa |
35,330 |
5% |
17% |
$132,000 |
2% |
1% |
37% |
| Illinois |
194,265 |
3% |
23% |
$150,000 |
4% |
3% |
47% |
| Kentucky |
25,422 |
1% |
1% |
$135,000 |
5% |
3% |
38% |
| Massachusetts |
57,915 |
-2% |
17% |
$278,000 |
2% |
-2% |
46% |
| Maryland |
91,462 |
2% |
6% |
$225,000 |
2% |
0% |
35% |
| Michigan |
199,045 |
1% |
10% |
$80,000 |
0% |
10% |
48% |
| Minnesota |
88,384 |
4% |
23% |
$160,900 |
1% |
1% |
24% |
| North Carolina |
165,575 |
3% |
14% |
$147,500 |
2% |
-2% |
36% |
| Nebraska |
29,420 |
4% |
23% |
$134,000 |
5% |
1% |
26% |
| New Hampshire |
9,484 |
3% |
4% |
$166,000 |
1% |
-1% |
39% |
| New Jersey |
85,005 |
2% |
12% |
$262,000 |
5% |
2% |
34% |
| Nevada |
89,071 |
3% |
-9% |
$149,000 |
3% |
26% |
13% |
| New York |
143,941 |
1% |
-6% |
$305,000 |
5% |
14% |
33% |
| Ohio |
174,355 |
2% |
6% |
$100,000 |
4% |
1% |
58% |
| Oklahoma |
58,019 |
2% |
12% |
$121,500 |
0% |
4% |
44% |
| Oregon |
68,495 |
1% |
-4% |
$224,500 |
3% |
18% |
30% |
| Pennsylvania |
168,326 |
3% |
25% |
$139,900 |
6% |
-2% |
|
| Rhode Island |
8,722 |
1% |
3% |
$155,000 |
-3% |
-5% |
32% |
| South Carolina |
95,014 |
2% |
5% |
$135,000 |
5% |
8% |
41% |
| Tennessee |
114,323 |
0% |
0% |
$119,999 |
4% |
5% |
44% |
| Virginia |
112,793 |
4% |
19% |
$285,000 |
3% |
2% |
41% |
| Vermont |
4,896 |
1% |
9% |
$197,000 |
6% |
9% |
|
| Washington |
115,087 |
2% |
-2% |
$235,000 |
4% |
7% |
29% |
| Wisconsin |
78,164 |
3% |
22% |
$140,000 |
1% |
1% |
45% |
Insufficient data available for states not included in the table
Residential Sales Counts & Median Prices by Metro Area - June 2013
|
Metro Area |
Annualized Sales |
%? from May 2013 |
%? from Jun 2012 |
Median Sales Price |
%? from May 2013 |
%? from Jun 2012 |
Distressed Discount% |
| New York-Northern New Jersey-Long Island, NY-NJ-PA |
142,571 |
1% |
4% |
$352,000 |
2% |
0% |
40% |
| Los Angeles-Long Beach-Santa Ana, CA |
151,945 |
0% |
-21% |
$440,000 |
2% |
27% |
32% |
| Chicago-Naperville-Joliet, IL-IN-WI |
164,106 |
4% |
22% |
$166,500 |
7% |
4% |
54% |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD |
87,697 |
3% |
21% |
$179,900 |
5% |
-3% |
|
| Miami-Fort Lauderdale-Pompano Beach, FL |
165,085 |
2% |
7% |
$149,900 |
3% |
18% |
39% |
| Washington-Arlington-Alexandria, DC-VA-MD-WV |
101,521 |
3% |
12% |
$360,000 |
3% |
7% |
39% |
| Atlanta-Sandy Springs-Marietta, GA |
138,247 |
2% |
-10% |
$130,000 |
5% |
18% |
33% |
| Boston-Cambridge-Quincy, MA-NH |
38,300 |
-1% |
17% |
$315,000 |
2% |
-2% |
44% |
| Detroit-Warren-Livonia, MI |
124,125 |
0% |
11% |
$65,000 |
-7% |
0% |
44% |
| San Francisco-Oakland-Fremont, CA |
67,695 |
-1% |
-23% |
$531,000 |
3% |
30% |
46% |
| Riverside-San Bernardino-Ontario, CA |
86,104 |
0% |
-16% |
$215,000 |
2% |
26% |
17% |
| Phoenix-Mesa-Scottsdale, AZ |
139,104 |
-1% |
-15% |
$173,000 |
2% |
25% |
20% |
| Seattle-Tacoma-Bellevue, WA |
61,614 |
2% |
-4% |
$290,000 |
4% |
7% |
40% |
| Minneapolis-St. Paul-Bloomington, MN-WI |
74,240 |
1% |
17% |
$173,900 |
3% |
5% |
27% |
| San Diego-Carlsbad-San Marcos, CA |
49,900 |
0% |
-21% |
$400,000 |
4% |
23% |
25% |
| Tampa-St. Petersburg-Clearwater, FL |
84,948 |
3% |
17% |
$110,000 |
1% |
18% |
31% |
| Baltimore-Towson, MD |
45,596 |
2% |
16% |
$213,000 |
2% |
-3% |
45% |
| Denver-Aurora, CO |
71,759 |
3% |
1% |
$244,500 |
2% |
11% |
32% |
| Pittsburgh, PA |
33,119 |
2% |
13% |
$116,500 |
6% |
1% |
|
| Portland-Vancouver-Beaverton, OR-WA |
42,446 |
1% |
-8% |
$248,307 |
3% |
13% |
31% |
| Sacramento-Arden-Arcade-Roseville, CA |
48,672 |
0% |
-15% |
$245,000 |
3% |
35% |
23% |
| Cincinnati-Middletown, OH-KY-IN |
38,416 |
3% |
12% |
$112,000 |
7% |
-4% |
59% |
| Orlando-Kissimmee, FL |
68,634 |
1% |
26% |
$125,000 |
1% |
16% |
21% |
| Cleveland-Elyria-Mentor, OH |
41,237 |
2% |
17% |
$89,000 |
1% |
-1% |
69% |
| Las Vegas-Paradise, NV |
68,148 |
3% |
-12% |
$145,600 |
3% |
26% |
12% |
| Columbus, OH |
36,520 |
4% |
12% |
$132,000 |
6% |
2% |
53% |
| San Jose-Sunnyvale-Santa Clara, CA |
25,406 |
0% |
-32% |
$630,000 |
3% |
26% |
26% |
| Charlotte-Gastonia-Concord, NC-SC |
43,534 |
4% |
18% |
$155,000 |
1% |
-3% |
38% |
| Virginia Beach-Norfolk-Newport News, VA-NC |
20,325 |
5% |
5% |
$195,000 |
-2% |
-6% |
35% |
| Providence-New Bedford-Fall River, RI-MA |
13,235 |
1% |
11% |
$170,000 |
-2% |
-4% |
32% |
| Nashville-Davidson-Murfreesboro-Franklin, TN |
33,872 |
1% |
6% |
$159,925 |
5% |
8% |
44% |
| Milwaukee-Waukesha-West Allis, WI |
24,775 |
4% |
13% |
$150,000 |
-3% |
3% |
62% |
| Jacksonville, FL |
42,413 |
2% |
43% |
$127,250 |
5% |
14% |
40% |
| Memphis, TN-MS-AR |
17,664 |
0% |
-3% |
$103,000 |
8% |
14% |
45% |
| Louisville/Jefferson County, KY-IN |
14,356 |
8% |
-1% |
$139,000 |
1% |
7% |
34% |
| Richmond, VA |
21,473 |
1% |
20% |
$189,900 |
6% |
6% |
31% |
| Oklahoma City, OK |
28,825 |
1% |
16% |
$126,750 |
1% |
3% |
37% |
| Hartford-West Hartford-East Hartford, CT |
9,016 |
1% |
10% |
$183,000 |
4% |
-6% |
36% |
| Buffalo-Niagara Falls, NY |
8,541 |
0% |
-35% |
$90,100 |
8% |
-3% |
23% |
| Birmingham-Hoover, AL |
7,139 |
12% |
-27% |
$158,741 |
6% |
18% |
42% |
| Raleigh-Cary, NC |
24,750 |
2% |
2% |
$182,000 |
2% |
-6% |
32% |
| Rochester, NY |
14,818 |
3% |
15% |
$122,000 |
3% |
2% |
37% |
| Tucson, AZ |
22,195 |
2% |
-7% |
$149,000 |
3% |
15% |
24% |
| Honolulu, HI |
13,863 |
6% |
-2% |
$423,871 |
-1% |
-1% |
|
| Tulsa, OK |
18,294 |
2% |
1% |
$127,000 |
1% |
6% |
50% |
| Fresno, CA |
14,444 |
-2% |
-11% |
$164,000 |
3% |
17% |
12% |
| Bridgeport-Stamford-Norwalk, CT |
6,813 |
1% |
14% |
$357,500 |
4% |
-8% |
47% |
| Albany-Schenectady-Troy, NY |
11,325 |
1% |
13% |
$180,000 |
3% |
4% |
39% |
| New Haven-Milford, CT |
6,142 |
0% |
8% |
$168,000 |
7% |
-6% |
29% |
| Omaha-Council Bluffs, NE-IA |
22,884 |
2% |
23% |
$135,000 |
6% |
2% |
44% |
Residential Sales Types by State - June 2013
|
State |
Institutional Investor Percent of Sales |
All-Cash Percent of Sales |
Short Sales Percent of Sales |
REO Sales Percent of Sales |
| U.S. Total |
9% |
30% |
14% |
9% |
| Alabama |
4% |
42% |
13% |
7% |
| Alaska |
2% |
1% |
1% |
5% |
| Arizona |
15% |
36% |
19% |
17% |
| Arkansas |
8% |
29% |
11% |
6% |
| California |
7% |
27% |
16% |
13% |
| Colorado |
8% |
22% |
13% |
10% |
| Connecticut |
1% |
21% |
12% |
7% |
| Delaware |
7% |
23% |
13% |
8% |
| District of Columbia |
1% |
18% |
11% |
1% |
| Florida |
12% |
57% |
29% |
10% |
| Georgia |
23% |
40% |
9% |
13% |
| Hawaii |
9% |
1% |
0% |
2% |
| Idaho |
8% |
2% |
3% |
7% |
| Illinois |
9% |
30% |
16% |
14% |
| Indiana |
6% |
17% |
1% |
5% |
| Iowa |
3% |
26% |
6% |
4% |
| Kansas |
4% |
1% |
0% |
4% |
| Kentucky |
5% |
29% |
1% |
2% |
| Louisiana |
5% |
35% |
10% |
5% |
| Maine |
2% |
2% |
0% |
2% |
| Maryland |
6% |
29% |
21% |
4% |
| Massachusetts |
1% |
20% |
11% |
7% |
| Michigan |
10% |
48% |
15% |
17% |
| Minnesota |
7% |
35% |
10% |
11% |
| Mississippi |
5% |
1% |
2% |
3% |
| Missouri |
11% |
5% |
2% |
10% |
| Montana |
4% |
1% |
0% |
2% |
| Nebraska |
5% |
21% |
8% |
4% |
| Nevada |
16% |
58% |
30% |
21% |
| New Hampshire |
2% |
27% |
14% |
6% |
| New Jersey |
3% |
35% |
13% |
3% |
| New Mexico |
6% |
1% |
3% |
11% |
| New York |
2% |
51% |
6% |
1% |
| North Carolina |
12% |
33% |
14% |
8% |
| North Dakota |
3% |
17% |
3% |
2% |
| Ohio |
10% |
33% |
17% |
16% |
| Oklahoma |
13% |
37% |
11% |
2% |
| Oregon |
6% |
25% |
12% |
6% |
| Pennsylvania |
3% |
31% |
11% |
5% |
| Rhode Island |
1% |
28% |
18% |
7% |
| South Carolina |
11% |
41% |
13% |
7% |
| Tennessee |
8% |
39% |
19% |
9% |
| Texas |
10% |
3% |
2% |
7% |
| Utah |
8% |
2% |
2% |
7% |
| Vermont |
4% |
80% |
0% |
2% |
| Virginia |
3% |
18% |
16% |
5% |
| Washington |
6% |
25% |
18% |
6% |
| West Virginia |
5% |
33% |
4% |
1% |
| Wisconsin |
9% |
22% |
8% |
5% |
| Wyoming |
4% |
2% |
4% |
9% |
Insufficient data available for states not included in the table
Residential Sales Types by Metro Area - June 2013
|
Metro |
Institutional Investor Pct of Sales |
All-Cash Pct of Sales |
Short Sales Percent of Sales |
REO Sales Percent of Sales |
| New York-Northern New Jersey-Long Island, NY-NJ-PA |
2% |
49% |
9% |
2% |
| Los Angeles-Long Beach-Santa Ana, CA |
6% |
24% |
12% |
10% |
| Chicago-Naperville-Joliet, IL-IN-WI |
10% |
30% |
17% |
16% |
| Dallas-Fort Worth-Arlington, TX |
12% |
4% |
3% |
8% |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD |
3% |
29% |
14% |
6% |
| Houston-Sugar Land-Baytown, TX |
9% |
4% |
2% |
10% |
| Miami-Fort Lauderdale-Pompano Beach, FL |
11% |
64% |
32% |
11% |
| Washington-Arlington-Alexandria, DC-VA-MD-WV |
3% |
18% |
17% |
4% |
| Atlanta-Sandy Springs-Marietta, GA |
27% |
42% |
11% |
15% |
| Boston-Cambridge-Quincy, MA-NH |
1% |
19% |
11% |
6% |
| Detroit-Warren-Livonia, MI |
15% |
56% |
28% |
24% |
| San Francisco-Oakland-Fremont, CA |
5% |
24% |
13% |
10% |
| Riverside-San Bernardino-Ontario, CA |
10% |
35% |
24% |
20% |
| Phoenix-Mesa-Scottsdale, AZ |
13% |
32% |
18% |
18% |
| Seattle-Tacoma-Bellevue, WA |
8% |
26% |
19% |
6% |
| Minneapolis-St. Paul-Bloomington, MN-WI |
8% |
33% |
11% |
13% |
| San Diego-Carlsbad-San Marcos, CA |
6% |
26% |
13% |
10% |
| St. Louis, MO-IL |
12% |
10% |
5% |
8% |
| Tampa-St. Petersburg-Clearwater, FL |
16% |
58% |
32% |
10% |
| Baltimore-Towson, MD |
7% |
30% |
21% |
4% |
| Denver-Aurora, CO |
8% |
20% |
12% |
11% |
| Pittsburgh, PA |
2% |
32% |
6% |
4% |
| Portland-Vancouver-Beaverton, OR-WA |
6% |
23% |
13% |
6% |
| Sacramento-Arden-Arcade-Roseville, CA |
14% |
27% |
19% |
16% |
| Cincinnati-Middletown, OH-KY-IN |
11% |
38% |
19% |
16% |
| Orlando-Kissimmee, FL |
14% |
53% |
36% |
11% |
| San Antonio, TX |
9% |
2% |
3% |
7% |
| Cleveland-Elyria-Mentor, OH |
9% |
33% |
22% |
20% |
| Kansas City, MO-KS |
11% |
2% |
2% |
13% |
| Las Vegas-Paradise, NV |
13% |
62% |
34% |
22% |
| Columbus, OH |
16% |
31% |
17% |
13% |
| San Jose-Sunnyvale-Santa Clara, CA |
3% |
19% |
9% |
6% |
| Indianapolis-Carmel, IN |
6% |
17% |
1% |
7% |
| Charlotte-Gastonia-Concord, NC-SC |
20% |
35% |
17% |
10% |
| Austin-Round Rock, TX |
6% |
2% |
1% |
4% |
| Virginia Beach-Norfolk-Newport News, VA-NC |
5% |
23% |
20% |
5% |
| Providence-New Bedford-Fall River, RI-MA |
1% |
26% |
19% |
8% |
| Nashville-Davidson-Murfreesboro-Franklin, TN |
7% |
31% |
16% |
8% |
| Milwaukee-Waukesha-West Allis, WI |
16% |
21% |
9% |
6% |
| Jacksonville, FL |
16% |
42% |
26% |
11% |
| Memphis, TN-MS-AR |
20% |
43% |
30% |
14% |
| Louisville/Jefferson County, KY-IN |
6% |
32% |
0% |
2% |
| Richmond, VA |
5% |
24% |
19% |
7% |
| Oklahoma City, OK |
10% |
34% |
10% |
2% |
| Hartford-West Hartford-East Hartford, CT |
2% |
19% |
11% |
6% |
| New Orleans-Metairie-Kenner, LA |
3% |
43% |
11% |
5% |
| Buffalo-Niagara Falls, NY |
3% |
29% |
10% |
3% |
| Birmingham-Hoover, AL |
5% |
25% |
5% |
4% |
| Salt Lake City, UT |
6% |
2% |
2% |
6% |
| Raleigh-Cary, NC |
9% |
34% |
15% |
6% |
| New York-Northern New Jersey-Long Island, NY-NJ-PA |
2% |
49% |
9% |
2% |
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