The Most Active REO Markets
The top metropolitan statistical areas (
MSAs) where Real Estate Owned (REO) properties were bought and sold during 2017 were in the South, according to a report by a leading online real estate marketing platform.
Hubzu completed an analysis that identified the average number of days a listing is on market and the average difference between purchase and sale price. The analysis found the most active buy, renovate and sell markets in 2017 were Huntsville, Ala. (38 percent of REO properties bought and sold within one year); Clarksville, Tenn. (34 percent); Gainesville, Fla. (30 percent); and Pensacola, Fla. (28 percent).
“With tight inventory and appreciating home prices affecting real estate market conditions across the country, many people are pursuing fix-and-flip markets as strategic income opportunities,” Hubzu Senior Vice President Patrick G. McClain said in a release. “There is noticeable activity in the southern and midwestern markets, which may be less competitive. As more buyers seek smart investment opportunities, we can anticipate this trend of fix and flipping homes to continue.”
Other top REO markets included Lima, Ohio (26 percent); Cincinnati (22 percent); Las Vegas (22 percent); Akron, Ohio (21 percent); and Modesto, Calif. (20 percent). Ohio and California has the most MSAs on the list.
According to the report, the top 20 REO MSAs had an average of 70 days listed on the market. Modesto had the smallest average number of days (51) listed on the market, while Huntsville had the largest average number of days (88) listed on the market.
The MSAs with the highest average difference between purchase and sale price were Oxnard, Calif. ($117,305); San Diego ($109,973); and York, Pa. ($67,499). The MSAs with the lowest average difference between purchase and sale price were Akron ($2,191); Clarksville ($3,595); and Huntsville ($6,593).