Distressed home sales, which include real estate-owned properties and short sales, dipped to 10.2% of total home sales nationally in October 2015, down 2 percentage points from October 2014, a new report from CoreLogic shows.
Although this is up 0.2 percentage points from September 2015, the month-over-month increase was expected due to seasonality.
Click to enlarge
Broken up, REO sales accounted for 6.9% of total home sales in October 2015. This is 1.6 percentage points below the October 2014 share, and the lowest for the month of October since 2007.
In addition, short sales made up 3.3% of total home sales in October 2015. The short sales share fell below 4% in mid-2014 and has remained in the 3-4 percent range since then.
For added perspective, at its peak in January 2009, distressed sales totaled 32.4% of all sales, with REO sales representing 27.9% of that share.
It’s important to note that there will always be some level of distress in the housing market. Before the crisis, the share of distressed sales was traditionally about 2%. If the current year-over-year decrease in the distressed sales share continues, it will reach that "normal" 2-percent mark in mid-2019.