Mortgage

CoreLogic: Distressed home sales at lowest level in 8 years

Account for 9.3% of total sales

Distressed sales, which include real estate-owned properties and short sales, accounted for 9.3% of total home sales nationally in August 2015, down 2.3 percentage points from August 2014 and down 0.4 percentage points from July 2015, CoreLogic (CLGX).

Click to enlarge

chart distressed sales

(Source: CoreLogic)

Within the distressed category, REO sales accounted for 6%, which is the lowest since September 2007 when it was 5.2%, while short sales made up 3.3% of total home sales.

The share of short sales has stayed in the 3% to 4% range since it fell below 4% back in mid-2014.  

At its peak in January 2009, distressed sales totaled 32.4% of all sales, with REO sales representing 27.9% of that share.

The report did note that there will always be some level of distress in the housing market. The pre-crisis share of distressed sales was traditionally about 2%.

If the current year-over-year decrease in the distressed sales share continues, it would reach that "normal" 2% mark in mid-2018.

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