The average sale price of REOs sold in the first quarter was 87 percent of the average estimated market value of those same properties at the time of sale. In some markets REOs sold at a much higher price-to-value ratio, including San Diego, California (100 percent), Charlotte, North Carolina (100 percent), San Francisco, California (97 percent), Bakersfield, Carolina (97 percent) and Portland, Oregon (97 percent).
“We’ve seen distressed inventory work its way through the auction and REO process at a varying pace depending on local market conditions and price points,” covering the Southern Californiamarket. “The uptick in April is a natural part of that flow toward equilibrium and a more stable market.”
Markets where REOs sold for the lowest price-to-value ratio in the first quarter were East Stroudsburg, Pennsylvania (62 percent), Akron, Ohio (66 percent), Atlanta (70 percent), Cleveland (70 percent), and Baltimore (74 percent). READ MORE Bank Owned REO Foreclosure Homes