COVER STORY
TRANSITION STRATEGIES
From Real Estate’s Frontlines
Here’s how veteran investors are responding to a shifting real estate market.
BY DAREN BLOMQUIST
ompetition at distressed property auctions is starting to slip after hitting record highs in the first quarter of 2022. This trend foreshadows a continued slowdown in the larger retail market while also signaling emerging opportunities for real estate investors willing to swim against the current. Proprietary buyer bidding data from Auction.com shows competition at distressed property auctions has C
started to ease after hitting all-time highs earlier this year. The data also shows the average discount below estimated as-is market value rising in the second quarter of 2022, after dropping to a nearly nine-year low earlier in the pandemic. These two trends point to distressed property buyers who are starting to hedge against a price slowdown, or even correction, by shrinking their buy box and bidding more conservatively.
First-Half U.S. Foreclosure Activity by Year
Online Saves per Foreclosure Acution Property
Bids per REO Auction Property
23.9
11.3
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
22 | think realty magazine :: september - october 2022
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