Institutional home sales decreasing in Charleston County

By Ashley Barker
abarker@scbiznews.com
Published March 3, 2014

Institutional investors accounted for 5.2% of all U.S. residential property sales in January, which is down from 8.2% in January 2013, according to data released by RealtyTrac.

The January share of institutional investors — entities purchasing at least 10 properties in a calendar year — was the lowest monthly level since March 2012, RealtyTrac reported.

Short sales and foreclosure-related sales accounted for a combined 17.5% of all U.S. residential sales in January. That’s up from 14.9% of all sales in December and down from 18.7% a year ago, the report said.

Daren Blomquist, vice president of RealtyTrac, said January sales numbers provided early evidence that large institutional investors backed by private equity are starting to wind down their purchases of homes to rent.

“It’s unlikely that this pullback in purchasing is weather-related given that there were increases in the institutional investor share of purchases in colder weather markets, such as Denver and Cincinnati, even while many warmer weather markets in Florida and Arizona saw substantial decreases in the share of institutional investors from a year ago,” Blomquist said in a statement.

In South Carolina, institutional investors totaled 9.1% of property sales in January, up from 8% in January 2013. Nearly 55% of sales were all cash, and 3.3% were considered short sales, RealtyTrac said.

Institutional investor percentage of sales for select S.C. counties

County

Greenville

Richland

Charleston

Spartanburg

Horry

Lexington

York

Anderson

Berkeley

Beaufort

Aiken

Florence

Dorchester

January 2014

13.0%

0.0%

1.7%

9.9%

0.0%

0.9%

0.4%

3.2%

2.2%

19.1%

0.0%

27.4%

16.7%

December 2013

3.4%

0.0%

7.3%

5.7%

14.0%

4.3%

1.5%

3.9%

4.8%

25.8%

4.6%

1.3%

4.0%

January 2013

18.1%

16.1%

3.1%

24.3%

2.5%

5.0%

4.8%

0.7%

6.3%

9.2%

1.3%

13.9%

10.7%

Source: RealtyTrac

Reach Ashley Barker at 843-849-3144 or @AshleyNBarker.

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