National home prices lost ground with declines of 1% over the past year, but REO demand — fueled by enthusiastic investors – showed price gains, Clear Capital said in its April home data index report.
Investor demand could be a driving force behind increasing prices for REO properties, as measured on a median price per square foot, which is increasing at a much faster pace than non-REO sales.
Over the last year, REO-only prices have jumped a healthy 5.5%, while fair market sales prices dropped 2.9%.
