HOUSINGNEWS REPORT
FEATURED ARTICLE
Distressed Sales Share Short Sales, Bank-Owned Sales and Foreclosure Auction Sales Share of Total Sales
60%
49.4%
50%
... as banks continue to unwind their REO portfolios, I expect foreclosure levels in Seattle to drop even further in the coming months.”
40%
30%
16.9%
20%
10%
0%
Matthew Gardner Chief economist, Windermere Real Estate, Seattle
a record-high percentage are selling to third-party investors rather than transferring back to the foreclosing bank. In 2016, 29 percent of all sales at the foreclosure auction were to third-party investors, the highest share going back to 2000, the earliest data is available. That increased appetite for a smaller slice of the pie is translating into thinner discounts for real estate investors purchasing at the foreclosure auction in some of the more highly competitive markets. Nationwide in 2016, investors realized an average discount of 33 percent below estimated full market value at the foreclosure auction, but in Washington, D.C., Seattle, Phoenix, Los Angeles and Las Vegas that average
discount was less than 25 percent, according to an ATTOM analysis.
Ohio, where the fight against blight is gaining traction thanks to a combination of state legislation, federal regulation and home flippers taking advantage of a recovering housing market, according to Matthew Watercutter, broker of record and senior regional vice president at HER Realtors, covering the Columbus, Cincinnati and Dayton markets in Ohio. Ohio’s new foreclosure fast-track law took effect in late 2016, designed to reduce vacant “zombie” foreclosures that contribute to neighborhood blight. “I think the legislation will help somewhat (but) I think it’s an issue that will need to be addressed more by the federal government,” said Watercutter, noting that while local courts do a good job of
“The Seattle-area economy continues to outperform the rest of the country and the housing market is going gangbusters,” said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market, where April foreclosure activity decreased 38 percent from a year ago. “As such, I’m not surprised that foreclosure activity continues to head towards pre-housing bubble averages. In fact, as banks continue to unwind their REO portfolios, I expect foreclosure levels in Seattle to drop even further in the coming months.” Flippers Profit in Fight Against Blight The drying up of the distress market is even showing up in hard-hit states like
ATTOM Data Solutions • P5
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