Distressed sales, which include real estate-owned properties and short sales, continued to drop and accounted for 9.7% of total home sales nationally in September 2015, according to the latest report from CoreLogic (CLGX).
This is down 2.4 percentage points from September 2014 and down 0.1 percentage point from August 2015.
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Broken out within the distressed category, REO sales accounted for 6.4%, which is the lowest since October 2007 when it was 6.2%.
Short sales made up 3.3% of total home sales in September 2015. The report noted that the short sales share fell below 4% in mid-2014 and has remained in the 3%-4% range since then.
To put this in perspective for what is considered a healthy housing market, the pre-crisis share of distressed sales was traditionally about 2%. If this current pace continues, the market will reach that "normal" 2% mark in mid-2018.