CoreLogic sees distressed housing sales rising in coming months
CoreLogic (CLGX) said tax credit-induced sales helped push distressed sales to a seven-month low in June, but the share of distressed sales is expected to bounce back in coming months, according to the firm's inaugural U.S. Housing and Mortgage Trends report. The bi-monthly report will track housing sales, valuation, negative equity and foreclosure activity. In June, the distressed sale share fell to 24% of overall sales, down from a peak of 35% in early 2009, according to CoreLogic. The firm said the lack of home equity is hindering sales. "Home equity has been traditionally the largest source of wealth and equity is a homeowner’s foundation of economic mobility and financial security," according to CoreLogic. "Since the peak in home sales in 2005, non- distressed sales have dramatically declined and there is a clear relationship between the decline in non-distressed sales and the level of negative equity." The firm said non-distressed sales fell nearly twice as much in high-negative equity zip codes in comparison to low-negative equity zip codes. Las Vegas with 61% and Riverside, Calif., with 59% continue to lead the nation in distressed sales for the largest 25 metropolitan markets, according to CoreLogic. Phoenix , Sacramento, Calif., and Orlando, Fla., were the only other markets to have distressed sales account for more than 50% of home sales. Write to Jason Philyaw.