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Distressed home sales are square pegs that don't
fit well into the round hole of the retail housing
market, a reality that has been highlighted by
the recent economic upheaval induced by the
coronavirus pandemic.
e economic upheaval has surprisingly
triggered a frenzy of demand in many local
housing markets as buyers clamor for a
limited supply of lower-density housing far
away from the madding crowd. Purchase
mortgage applications rose annually for the
sixth consecutive week in the week ending
June 26, according to the Mortgage Bankers
Association, and pending home sales in May
spiked 44% from April, the biggest monthly
increase on record, according to the National
Association of Realtors.
at frenzied demand coupled with muted
inventory—existing home inventory was still
19% below last-years' levels in May—has put
upward pressure on home prices in some local
markets while others are suffering, resulting
in mediocre home price appreciation at the
national level. Median home prices nationwide
increased 2.3% in May, according to NAR, the
lowest home price appreciation since February
2012.
Meanwhile the average sale price for bank-
owned (REO) homes sold via online auction
on the Auction.com platform increased 12.7%
in May.
Feature By: Daren Blomquist
THE AUCTION
ADVANTAGE
