Distressed Properties Vanishing from Most Markets
Could the foreclosure crisis finally be fading away? REO and short sales comprised about 11 percent of total home sales in July, the lowest share since December 2007, CoreLogic reports. At its peak, distressed sales made up 32.5 percent of all sales in January 2009.
In the World of REOs
"The ongoing shift away from REO sales is a driver of improving home prices, as REOs typically sell at a larger discount than do short sales," CoreLogic notes.
The pre-crisis share of distressed sales typically was about 2 percent, so analysts say there is still a ways to go.
Of all states, California posted the largest drop in distressed sales, falling 54.8 percent from the January 2009 peak to 67.4 percent in July.
However, in some states, distressed homes remain problematic. The states with the largest share of distressed sales as of July, according to CoreLogic, are:
- Michigan: 26.3%
- Florida: 23.3%
- Illinois: 23.3%
- Nevada: 21.9%
- Georgia: 19.8%
On a metro level, Chicago-Naperville-Arlington Heights, Ill., had the largest share of distressed sales, at 26.5 percent, followed by Miami-Miami Beach-Kendall, Fla., at 26.1 percent, and Orlando-Kissimmee-Sanford, Fla., at 24.5 percent. Sacramento-Roseville-Arden-Arcade, Calif., posted the largest drop in distressed sales from a year earlier, dropping from 31.3 percent in July 2013 to 15.2 percent in July 2014.
Source: “Distressed Sales Accounted for Just 11 Percent of Total Home Sales in July 2014,” CoreLogic (Sept. 30, 2014)