Overall home prices edged lower in April from a year earlier, but activity in the REO properties sector has left a number of industry experts with high hopes for the upcoming summer season.
Property values edged 1 percent lower last month on an annual basis, but the price of REO properties, including foreclosed homes and short sales, surged 5.5 percent during the same period, according to a report from Clear Capital. Analysts from the company believe investors played a major role in the recent success of REO homes.
"Home prices continue to show relative strength in April with virtually no change over the short term and tapering losses over the longer term," said Clear Capital director of research and analytics Alex Villacorta.
Meanwhile, the report found that REO sales accounted for roughly 27.9 percent of all transactions in April, which is a notable increase from the end of 2011 when the share was 25.3 percent.
Buyers continue to capitalize on the bargain prices available through distressed properties. Experts say the reason so many investors have set their sights to these homes is because they can easily purchase these homes for a low cost, fix them up and resell them for a profit or convert the property into a rental unit.
