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LACK OF DISTRESSED FORCEUPDATE PROPERTIES LED TO MAY'S DROP FIVE STAR'S FORCE EXPANDS NETWORK TO IN EXISTING-HOME SALES TREO INTERNATIONAL AND BAYVIEW LOAN SERVICING The drop in existing-home sales reported by the National Association of Realtors (NAR) in late June likely stemmed from a lack of distressed properties on the market, according to IHS Global Insight. In May, existing-home sales fell to a seasonally adjusted annual rate of 4.55 from 4.62 million in April, representing a monthly decline of 1.5 percent, NAR reported. Existing-home sales were still up from a year ago, however, by 9.6 percent. "Sales declined in May because of a drop in the number and share of investors buying homes," said IHS economist Patrick Newport in a commentary. "The investor share fell three percentage points from April to 17 percent. This drop was likely related to a drop in the numbers of distressed homes on the market." According to NAR's report, investor purchases made up 17 percent of home sales in May, down from 20 percent in April and 19 percent in May 2011. The report also revealed that distressed home sales—including short sale and REO properties—slipped on both a monthly and yearly basis. In May, distressed sales accounted for 25 percent of all existing-home sales compared with 28 percent in April and 31 percent in May 2011. Newport explained home sales were also down because those who are underwater or nearly underwater "cannot trade up." The drop in the number of consumers who are able to 30 purchase a new home is one reason prices are currently rising. NAR reported the median existing-home price was up by 7.9 percent in May to $182,600 when compared with a year ago. The increase marks the third month of annual price gains. "Some of the price gain results from a shrinking share [of] distressed homes in the sales mix," said Lawrence Yun, NAR's chief economist. Due to the shortage of distressed properties, Yun says Realtors in West Coast states have been calling for an expedited process to get more foreclosures on the market due to the greater number of buyers compared with available properties. Shortages also are evident in much of Florida, according to NAR. On average, foreclosures sell for discounts of about 19 percent below market values while short sales sell at a 14 percent discount. While investor sales may be down due to a lack of discounted properties, more traditional buyers are sprouting on the market. IHS worries tight credit conditions will continue to hold that group back. "The home sales market is still on the mend," Newport said. "But the path to recovery will be a slow and bumpy one. The key obstacle to a strong recovery right now is tight credit. Our forecast is for existing-home sales to climb by 9 percent this year to a still-too-low 4.68 million units in 2012." The Five Star Institute's Federation of REO Certified Experts (FORCE), an elite agent/broker membership group, continues to grow. In line with this growth, Five Star announced an expansion of the professional network of this agent/broker membership group to two nationwide companies: TREO International and Bayview Loan Servicing. The alliance with California-based TREO provides FORCE members with a streamlined opportunity for extending their reach in the commercial REO space. TREO, an REO asset management, marketing, and disposition services provider, now has full access to the complete database of FORCE agents and will soon begin proactively reaching out to agents for assignments. TREO will additionally open its initial note sales, currently available to investors, to FORCE agents. De'Ann Clark, president and CEO of TREO International, sees great value in having FORCE as a partner. "TREO International's high quality of service in commercial and residential management and disposition of sub- or non-performing notes and assets is due to working hand-in-hand with our strategic alliances, which include some of the most highly professional agent members of the FORCE," she said. Through the partnership with Floridabased Bayview Loan Servicing, FORCE members who completed the Five Star Short Sale Certification course are eligible to receive short sale assignments direct from Bayview, which is expected to represent major growth in existing short sale businesses and afford FORCE agents the opportunity to diversify their current REO businesses. Bayview Loan Servicing is recognized as a national premier servicer of both residential and small-balance commercial mortgage loans. Its partnership with the FORCE took effect July 1. Both the TREO and Bayview alliances comply with the FORCE's mission to expose its members to as many business- and brandbuilding opportunities as possible.  

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