Banks Eye Housing as a Better Investment
Tuesday, June 24, 2014
By: Amy Green

June 24, 2014 | WMFE, Orlando -- Orlando's rate of bank-owned homes sold at auction is the nation's worst. That's partly because banks now think homeownership is a better investment.

A new report from RealtyTrac finds that nearly 4 percent of homes sold in Orlando are foreclosed homes sold at auction. That's nearly double the national average.

But Daren Blomquist of RealtyTrac says the rate of short sales is declining. He says with prices rising banks are less willing to negotiate short sales and want to take possession instead.

"Even if the short sale doesn't work out they can foreclose, and the property probably will be worth more in six months than it was now when they're potentially negotiating the short sale."

The Tampa area ranked second in the rate of bank-owned homes sold at auction. Miami was third, Indianapolis fourth and Lakeland fifth.

Blomquist says Orlando's housing market is improving but not fully.

"Right now we're kind of in an in-between stage between a distressed housing market, which we had between 2007 and 2012, and a healthy housing market. We're not quite at a healthy housing market yet." 

Nationwide home prices climbed 13 percent in the past year, the highest annual gain since prices bottomed out in 2012.