REO inventory declined at an accelerated pace in 2012 as investor activity intensified, but the impact of the reduction has been uneven across markets, according to an analysis from CoreLogic.
In the data provider’s March MarketPulse report, economist Sam Khater explained markets in the
According to CoreLogic, the five markets that have experienced the biggest declines are
The decline suggests an increase in investment activity from both individual and institutional investors, with different contributions from the investor types. The report categorized entities that purchased five or more properties a year using the same name as institutional investors.
According to CoreLogic, individual investors reached a trough of about 10,000 monthly purchases in 2009, and eventually grew their transactions to more than 50,000 units by late fall 2012. Individual investor activity has also contributed to declines in
On the other hand, cities such as
As individual and institutional investors scooped up REOinventory, prices for REOs also increased in the targeted markets. Out of the 16 markets tracked by CoreLogic,
In the Midwest, however, REOs are elevated, with cities such as