More First Quarter Home Sales Data to Consider
Last week REI INK shared data about U.S. average homeownership tenure and sales price gains from ATTOM Data Solutions’ first quarter U.S. Home Sales Report.
This week, we’ll look at the report’s data on cash sales, institutional investor sales, distressed sales and FHA buyers share.
All-Cash Sales
Overall, first quarter cash sales in first quarter 2019 (28%) decreased slightly versus the first quarter of 2018 (28.9%), but it beat all-cash sales of the previous quarter (27.7%). Metro areas with more than 1 million in population that showed the highest share of all-cash sales were Miami (44.6%); Tampa-St. Petersburg, Florida (40.7%); Birmingham, Alabama (40.6%); Detroit (40.1%); and Memphis, Tennessee (38.9%).
Institutional Investor Sales
For the report, institutional investors are considered entities that buy at least 10 properties in a calendar year.
Nationwide, institutional investor shares of single-family home and condos were down nationwide, but they were up 29% in local markets. In first quarter 2019, these shares were 1.8%, compared to 3.7% in the previous quarter and 2.2% from first quarter 2018.
Among 49 metropolitan statistical areas with a population of at least 200,000 and at least 40 institutional investor sales in Q1 2019, those with the highest share of institutional investor sales in the first quarter were Columbia, South Carolina (7.9%); Atlanta, Georgia (7.4%); Charlotte, North Carolina (5.6%); Memphis, Tennessee (5.1%); and Las Vegas, Nevada (5%).
Distressed Sales
Bank-owned (REO) sales, third-party foreclosure auction sales, and short sales—all considered distressed sales—made up 14.2% of all single-family and condo sales in the first quarter of 2019. That’s an increase from the 12.9% seen in the previous quarter but down from 15.2 % in the first quarter of 2018.
Of the 135 metropolitan statistical areas with a population of at least 200,000 and at least 100 total distressed sales in first quarter 2019, the highest share of total distressed sales were in Atlantic City, New Jersey (33.1%); Trenton, New Jersey (28%); Rockford, Illinois (27.3%); Peoria, Illinois (26.1%); and Shreveport, Louisiana (25.9%).
Of the 135 metro areas, 24% saw year-over-year increases in share of distressed sales. Among those metro areas were San Antonio, Texas, with a 22.2% increase; Salt Lake City, Utah, up 20.6%;); New Orleans, Louisiana at an 11.8% increase; Indianapolis, Indiana, up 10.6%; and Raleigh, North Carolina, up 8.9%.
FHA Buyers
FHA buyers are typically first-time homebuyers or buyers making a low down payment. FHA buyers share was 10.9% of all U.S. single-family and condo sales in first quarter 2019. That’s a slight increase from 10.8% percent of all sales in the previous quarter but a decrease from 11.8% in first quarter 2018. The number marked the eighth consecutive quarter with annual decreases.
Among metro areas with a population of at least 1 million, those with the highest share of sales to FHA buyers were Indianapolis, Indiana (18.5%); Riverside, California (18%); Houston, Texas (17.3%); Providence, Rhode Island (16.2%); and Hartford, Connecticut (16.2%).
