The majority of residential sales in Jacksonville are still all-cash deals and are being driven by institutional investors.
According to RealtyTrac’s November 2013 U.S. Residential & Foreclosure Sales Report, which covers single family homes, condominiums and townhomes, 20.3 percent of sales in November were to institutional investors and 56.8 percent were cash sales.
Institutional investor purchases are defined by RealtyTrac as residential property sales to non-lending entities that purchased at least 10 properties in the last 12 months.
Jacksonville is among the top five markets in investor purchases, joined by Columbus, Ohio, Phoenix, Atlanta and Cape Coral-Fort Myers, Fla.
Jacksonville was also among the highest markets for third party foreclosure auction sales (3.9 percent), trailing Miami (4 percent) and Atlanta (3.9 percent).
“The housing market recovery continued to be driven by investors and other cash purchasers in November,” said Daren Blomquist, vice president at RealtyTrac, in a news release. “Lenders are taking advantage of this environment to unload more of their bank-owned inventory and in-foreclosure inventory at the foreclosure auction.
“But as the backlog of distressed inventory available dries up in many of the markets with the most efficient foreclosure processes — namely California, Arizona and Nevada, with Georgia not far behind — overall sales volume is declining and will continue to do so until more non-distressed sellers enter the market.”
Source: RealtyTrac and Jacksonville Business Journal