Santa Barbara, CA --- May 30, 2014 RealtyStore (http://www.realtystore.com), the nation’s leading provider of the broadest variety of real estate listings, found the median price of bank foreclosuresfor sale in six select states list at an average of nearly 50% below recent median existing-home sale prices.
The states, Maryland, Massachusetts, Mississippi, Missouri, Nevada, and New Jersey contained the highest percentages of mortgages in default, past due 90-days or more as of the end of the first quarter of 2014. Given their elevated default rates, these states pose the greatest risk of adding significant amounts of bank foreclosed, or REO, inventory in the near future, potentially putting further downward pressure on REO prices.
Less than 2.5% of all mortgages in the country ran over 90-days past due at the end of March, 2014. Dramatic differences in the default level have been noted across the country’s regions. While the far West (California and Arizona) and the deep South (Florida) contained the largest number of mortgage defaults and foreclosures in recent years, loan default activity has spread to different states and regions.
A material opportunity may exist for home buyers interested in migrating to lower cost markets or investing in low cost local real estate
In the North East, Massachusetts and New Jersey top the region with over 3% of mortgages running 90-days or more past due. Maryland ran close behind in the Mid East region, also posting more than 3% of home loans at least 90-days past due. Mississippi led both the South, and the entire country, with a 90-day default rate of over 4%. In the Mid West, Missouri’s rate at over 2% mirrored the country’s overall average, while posting the highest level in its region. Nevada led Western states far ahead of California and Arizona, with just under 4% of its mortgages in default over 90-days.
Using these high default states as focal points, RealtyStore analyzed the price points on current standing inventory of REO listings across each state. Results show the median list prices in each state gravitate to the low end of the price spectrum. On a regional basis, the median REO list prices range from 41% to 62% below their median existing-home sales prices in April.
Although existing-home sales prices vary greatly across regions, these particular states display REO list prices low enough to suggest a material opportunity may exist for home buyers interested in migrating to lower cost markets or investing in low cost local real estate.
See the accompanying graph for additional illustration and details.
RealtyStore (http://www.realtystore.com), a division of Nations Info Corporation, is the leading provider of foreclosure listings and discount property data nationwide. RealtyStore's mission is to empower its customers with the tools, education and analysis required to identify and potentially maximize profits with undervalued real estate. Collected from hundreds of public and private sources, RealtyStore's proprietary database includes over 2 million listings including pre foreclosures, foreclosures, auctions, short sales, lease option or rent to own, and owner financed listings.
REO properties referenced herein have completed the foreclosure process with a recording date on or before the date of this press release. REOs have been repossessed by a bank, lending institution or government sponsored loan guarantor such as Fannie Mae, Freddie Mac, HUD or the VA. REO title holders, inventory counts and prices in any area can vary at any time. REO counts and prices are accessed through RealtyStore’s proprietary database which is derived through hundreds of public and private data providers. Local housing market data and census data is derived from third party and public records offices.