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REO Sales Fell To 2007 Lows

Sales of real estate owned (REO) properties continue to plummet as inventory of bank-owned homes dwindles, according to research recently released by CoreLogic.

REO sales accounted for 7.8% of total home sales in January, according to the firm’s data. That’s down 3.3 percentage points from January 2015 and up 0.6 percentage points from December 2015.

What’s more, it is 20.2 percentage points lower than the peak of 27.9% in January 2009.

In fact, it was the lowest share of REO sales for the month of January since 2007, CoreLogic says.

“While distressed sales play an important role in clearing the housing market of foreclosed properties, they sell at a discount to non-distressed sales, and when the share of distressed sales is high, it can pull down the prices of non-distressed sales,” writes CoreLogic’s Molly Boesel in the company’s Insights blog. “There will always be some level of distress in the housing market, and by comparison, the pre-crisis share of distressed sales was traditionally about two percent. If the current year-over-year decrease in the distressed sales share continues, it will reach that ‘normal’ two percent mark in mid-2018.”

Short sales accounted for 3.4% of total home sales in January. The last time short sales fell below 4% was in mid-2014.

States with the highest shares of distressed sales in January included Maryland (19.9%), Connecticut (19.1%), Florida (18.0%), Michigan (18.0%) and Illinois (17.4%).

 

LRES Acquires InsideValuation

Real estate owned and appraisal management company (AMC) LRES has acquired InsideValuation, a provider of commercial and residential evaluations, for an undisclosed sum.

The deal merges the companies’ best-of-breed solutions and will enhance service levels for their mortgage and real estate industry customers.

InsideValuation has built a reputation for providing highly accurate evaluation reports containing thorough data and analysis, LRES says in a release. Headquartered in Reno, Nev., the company offers commercial and residential interagency-compliant evaluations that are performed by a network of more than 25,000 field agents.

Through this acquisition, InsideValuation’s hybrid and appraisals products can now be produced under LRES’ AMC licenses, with jurisdictions in all 50 U.S. states and complying with state regulations.

The deal also gives InsideValuation customers access to LRES’ technology solutions through the LRES DirectConnect Integration Hub.

The acquisition became official on March 31.

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REO Sales Fell To 2007 Lows

 

 

 

 

 

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