Distressed sales accounted for 11.1% of total market sales in February 2016, down 2.9% annually and 0.4% from January, according to CoreLogic’s most recent report.
Within those distressed sales, Real Estate Owned sales accounted for 7.8% and short sales accounted for 3.3% of total home sales for February, according to the report.
These REO sales decreased by 2.9% annually to their lowest level since 2007. Short sales, on the other hand, hover between 3% and 4%, for the last couple years.
At their peak in January 2009, distressed sales totaled 32.4% of total market sales with REOs making up 27.9%.
CoreLogic continues to project that, at the current rate of decrease, the market will hit its pre-crisis mark of 2% in distressed sales by mid-2018.
Only nine states did not report an annual decrease in distressed sales. Maryland sold the largest share of distressed sales at 19.9% year-over-year. Connecticut came in second at 19.1%, followed by Michigan at 18%, Florida at 17.5% and Illinois at 17.1%. On the other hand, North Dakota sold the fewest distressed sales at 2.5%.
Oil states continue to see a decrease in distressed sales. Distressed sales in Texas decreased by 1.3% annually, 0.5% in Oklahoma and 0.2% in North Dakota. Nevada felt the largest decline when it dropped 4.8% annually.
From the market’s peak in distressed sales in January 2009, California led with the largest decrease as it dropped from 67.4% to 7.6%.
North Dakota and the District of Columbia, at just one percentage point from their pre-crisis distressed sales rate, are the only states close to their pre-crisis rate.
This chart shows the percentage of distressed sales since 2006:
Click to Enlarge