RealtyTrac Releases Occupied REO Report

The housing market is transitioning away from a rebound driven primarily by speculative forces to one where the underlying fundamentals will be much more important according to RealtyTrac.

Over the past several years investor purchases have been the primary driver of the housing recovery, helping clear inventories of foreclosed and lender-owned properties and raising home prices. Home prices, which tumbled 33.7 percent from peak to trough using the S&P/Case-Shiller Home Price Index, have since rebounded 16.3 percent and are up 12.4 percent over the past year alone. The swing in prices exaggerates the extent of improvement and likely reflects the whipsaw effect of prices overshooting to the downside during the worst of the housing bust.

An estimated 47 percent of bank-owned homes nationwide are still occupied by the previous owner who was foreclosed on. The percentage was higher in some states and metros as you can see from the attached data. Data shows that 20 percent of all homes in foreclosure nationwide have been vacated by the homeowner.

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