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» REO SALES LEVEL OFF AS SHORT SALES PICK UP STEAM With the exception of short sales, distressed sales activity was relatively muted in June, according to data from RealtyTrac. REO sales remained stable, accounting for 9 percent of June's home sales, compared to 10 percent in May and unchanged from a year earlier. Cash sales also saw little change in June. About 30 percent of residential sales were all-cash transactions compared to 31 percent in both May 2013 and June 2012. Though, several Florida metros saw a notably high share of cash transactions, including Cape Coral-Fort Myers (70 percent), Miami (64 percent), Sarasota (59 percent), and Tampa (58 percent). Meanwhile, short sales saw a significant increase over last year, representing 14 percent of all residential sales in June, up from 8 percent a year earlier. In May, 15 percent of home sales were short sale transactions. Institutional investors, or non-lending entities that have bought at least 10 properties within the last 12 months, accounted for 9 percent of residential sales in June, up slightly from 8 percent in May but down from 10 percent in June 2012. "The U.S. housing market is slowly but surely moving toward a more normalized and sustainable pattern after a flurry of institutional and cash buyers flocked to residential real estate last year, pushing up prices and picking clean the best inventory available in many areas," said Daren Blomquist, RealtyTrac VP. Tracking sales prices, RealtyTrac found the national median price of a home rose to $168,000 in June, up monthly and annually by 3 and 5 percent, respectively. When compared to non-distressed sales, which average a median sales price of $181,500, RealtyTrac reported foreclosures or bank-owned properties sold at a discount of 34 percent nationally. States with steeper discounts included Ohio (58 percent), Michigan (48 percent), Illinois (47 percent), Massachusetts (46 percent), and Wisconsin (45 percent). Home flipping is tapering off in markets where fewer distressed bargains are available, according to Blomquist. A separate study by RealtyTrac showed some former "flipping hot spots" are experiencing significant declines. Markets falling into this category include Las Vegas, where flipping declined 41 percent over the first half of this year; Phoenix, where flipping dropped 35 percent; Atlanta, down 24 percent; VISIT US ONLINE @ DSNEWS.COM and Los Angeles, which saw a 19 percent drop in flipped properties. Craig King, COO at Chase International brokerage in the Reno-Sparks, Nevada area says declines in property flipping are "actually a positive sign of the housing recovery." Rich Cosner, CEO of Prudential California Realty, says the opportunity to buy and flip homes in Southern California is diminishing each month with price tags for fixer-uppers rising rapidly. Investors working in markets where foreclosures have ticked up recently, however, are earning sizeable profits, according to RealtyTrac, and in fact, the company reported an increase in home flipping in about two-thirds of the markets it observed. RealtyTrac says markets where investors are seeing the greatest gross profits are DeltonaDaytona Beach-Ormond Beach, Florida, where the average return is 82 percent; Omaha-Council Bluffs, Nebraska-Iowa, with a return of 56 percent; and Palm Coast, Florida, where flipping yields a 34 percent profit. Nationwide, investors earned an average gross profit of $18,391 per home flipped during the first half of this year, according to RealtyTrac's study. That represents a 9 percent return on investment, and is up from a profit of $5,321 in the first half of 2012 and is a vast improvement from the first half of 2011 when flippers lost an average of $13,206. The World Wide Web is a busy place. DSNews.com cuts through the noise. The information you need, Loud and Clear. Maximizing marketability. Limiting liability. Our REO REHAB & Investment Property REHAB Services Include: • Preservation & Maintenance • Rekey • Trash-out • HVAC & Plumbing • Painting & Flooring • Kitchen & Bath Updates • Estimates within 48 hours ABBA Workmanship is FULLY guaranteed. Serving Florida & the Southeast Since 1985 (800) 398-3547 • (904) 886-2990 (904) 687-9057 • abbaconstruction.com bid requests: reoabba@abbaconstruction.com Call 214.525.6700 or visit DSNews.com. • Appliances • Electrical • Roofing General Contractors License CGC 1510602 13-1220 Abba Construction Ad_3rd_4C_FINAL.indd 1 reliable • responsible • resourceful 8/15/13 1:31 PM 77

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