RealtyTrac has released its August U.S. Residential and Foreclosure Sales Report. For the month, the Nashville-Davidson-Murfreesboro-Franklin market saw institutional investors represent 7 percent of home sales, all-cash sales represent 36 percent, short sales represent 18 percent and real estate owned (REO) sales represent 11 percent.
By comparison, check these stats for the nation:
* All-cash purchases represented 45 percent of all sales in August, up from 39 percent in July and 30 percent in August 2012. Among metro areas with a population of 1 million or more, those with the highest percentage of all-cash sales were Miami (69 percent), Detroit (68 percent), Las Vegas (66 percent), Jacksonville, Fla., (65 percent) and Tampa, Fla., (64 percent).
* Institutional investors (purchasing 10 or more properties in the last 12 months) accounted for 10 percent of all sales in August, up from 9 percent in July and 9 percent in August 2012. Among metro areas with a population of 1 million or more, those with the highest percentage of institutional investor purchases were Memphis (31 percent), Jacksonville (29 percent), Atlanta (22 percent), St. Louis (17 percent) and Detroit (17 percent).
* Short sales accounted for 15 percent of all U.S. residential sales in August, up from 14 percent in July and 8 percent in August 2012. States with the biggest percentage of short sales were Nevada (34 percent), Florida (29 percent), Ohio (23 percent), Maryland (21 percent), Tennessee (20 percent), and Michigan (20 percent).
* Sales of bank-owned homes (REO sales) accounted for 10 percent of all U.S. residential sales in August, up from 9 percent in July and 9 percent in August 2012. States with the biggest percentage of REO were Nevada (22 percent), Ohio (17 percent), Arizona (17 percent), Michigan (16 percent), Illinois (14 percent) and California (14 percent).
In short, Nashville is faring relatively well, accordign to Daren Blomquist, RealtyTrac vice president.
“The August numbers show a solid housing recovery is taking place in the Nashville market, with home sales and median prices both up from a year ago," he said. "However, the recovery is somewhat lopsided as evidenced by the high percentage of cash purchases and the growing percentage of institutional investor purchases. Institutional investors and other cash buyers are a disproportionate share of the market, helping to drive up sales volume and prices. But that recovery is unsustainable for the long term without more participation from first-time homebuyers and move-up buyers.”
RealtyTrac defines the type sales as follows:
Bank-owned sales: REO sales of residential properties that have been foreclosed on and are owned by the foreclosing lender (bank).
Short sales: sales of residential properties where the sale price is below the combined total of outstanding mortgages secured by the property.
All-cash purchases: sales in which no loan is recorded at the time of the sale and for which RealtyTrac has coverage of loan data.
Institutional investor purchases: residential property sales to non-lending entities that purchased at least 10 properties during the previous 12 months.