South Dominates REO Markets

By one measure, Huntsville, Ala., is the real estate-owned capital of the country.

Hubzu, Luxembourg, released data ranking the top 20 U.S. metropolitan statistical areas by highest percentage of Real Estate Owned properties bought and sold within 2017. The data analysis also identified the average number of days a listing is on market and the average difference between purchase and sale price.

The data show that the most active buy, renovate and sell markets are dominated by areas in the South, with Huntsville (38 percent of REO properties bought and sold within one year), Clarksville, Tenn. (34 percent), Gainesville, Fla. (30 percent) and Pensacola, Fla. (28 percent) topping the list. Other notable active markets were cities in the Midwest and West, including Lima, Ohio (26 percent), Cincinnati (22 percent), Las Vegas (22 percent), Akron, Ohio (21 percent) and Modesto, Calif. (20 percent). One notable exception was York, Pa., with 16 percent of REO properties being bought and sold within the year.

“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,” said Patrick G. McClain, Senior Vice President of Hubzu Auction Services. “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 report findings:

–While the most active REO buy, renovate and sell region was the South, from a state perspective, Ohio and California have the most metros on the list.

–The top 20 REO MSAs have 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.

–When analyzing the average difference between purchase and sale price, markets with the highest difference were Oxnard, Calif. ($117,305), San Diego ($109,973) and York ($67,499). MSAs with the lowest difference are Akron ($2,191), Clarksville ($3,595) and Huntsville ($6,593).