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REO Volume in High-Performing Metros

foreclosure and claim preclusionA recent report lists the top 10 and bottom 10 metroes by forecast growth through June 2019, featuring REO saturation by city. The End of Q1 2019 Home Data Index report from ClearCapital highlights growth by Home Price Index (HPI) growth and forecast HPI.

The Mcallen-Edinburg-Mission, Texas metro tops ClearCapital’s list with a forecast HPI of 80.95 and a forecast growth of 2.94%. The Mcallen-Edinburg-Mission metro’s current REO saturation is at 1.62%, relatively low compared to other metros on the list. Las Vegas-Henderson-Paradise, Nevada and Akron, Ohio take the second and third spot, with REO saturation of 10.18 percent and 14.72 percent, respectively.

Other high-performing metroes include Akron, Ohio; Atlanta-Sandy Springs-Roswell, Georgia; Tucson, Arizona; Phoenix-Mesa-Scottsdale, Arizona; San Jose-Sunnyvale-Santa Clara, California; and Orlando, Florida.

Rochester, New York is ranked as the bottom metro by forecast growth. ClearCapital notes a 92.89 forecast HPI and an HPI Index Growth -4.49% in this metro and an REO saturation according to the report of 10.63%.

Many metroes in the bottom ten and top ten lists hold REO saturations of over 10%. Baltimore-Columbia-Towson, Maryland holds the highest listed REO saturation at 16.52%, followed by the St. Louis metro at 15.25% and the Chicago metro area at 15.35%.

On a national level, home prices are increasing, according to First American Financial Corporation’s February Real Housing Price Index (RHPI). The Index reveals that real house prices increased 2.9% year-over-year while the consumer house-buying power has increased 2.4% year-over-year. First American’s data is in line with ClearCapital’s data for California, revealing strong growth in the San Jose metro area.

According to First American, California leads the nation for potential home buyers, as four cities—San Jose, Los Angeles, San Francisco and San Diego—where among six whose RHPI decreased and affordability increased. First American calculations of realtor.com in February 2019 show that the number of listings in San Jose, Seattle and San Francisco increased 124%, 89% and 53%, respectively, from 2018.

New Hampshire (8.1%), Wisconsin (7.8%), Rhode Island (6.5%), Ohio (6%) and Georgia (6%) saw the largest year-over-year increases in the RHPI. Wyoming led the nation in the largest decrease in RHPI at 6%.

About Author: Seth Welborn

Seth Welborn is a contributing writer for DS News. He is a Harding University graduate with a degree in English and a minor in writing, and has studied abroad in Athens, Greece. An East Texas native, he also works part-time as a photographer.
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