Who Were REO Auction Buyers in 2021?
According to Auction.com’s Daren Blomquist, most REO auction buyers in 2021 were owner-occupants or local community developers. Of those buyers, 99% purchased five or fewer properties with 74% of those properties being located within 100 miles of where they live. The U.S. states with the highest share of owner-occupant REO auction buyers in 2021 were Idaho (43%), Hawaii (25%), Maine (23%), New Mexico (22%), and Washington (21%). The top three states in terms of sold REO auction volume in 2021 all posted owner-occupancy rates above the national average: Illinois (15%), New York (17%), and Florida (17%).
Interestingly, Blomquist said bank-owned auctions have become more palatable for owner-occupant homebuyers as the scarcity of retail housing inventory persists.
“I’m competing against retail buyers who are wanting to live there, and they are outbidding me,” said Fisher, who said he has been investing part-time for about 20 years, rehabbing and reselling about one property per year.” Said a Cleveland-area REO auction buyer who has observed more competition from owner-occupant buyers.