In April, sales of distressed homess continued to fall dropping 3 percentage points from April 2015 and 1.7 percentage points from March 2016 to 8.8%, according to CoreLogic's Molly Boesel.

Within the distressed category, REO sales accounted for 5.7% and short sales accounted for 3% of total home sales in April 2016.

Boesel writes that at its peak in January 2009, distressed sales totaled 32.4% of all sales.

There will always be some level of distress in the housing market, and by comparison, the pre-crisis share of distressed sales was traditionally about 2 percent. If the current year-over-year decrease in the distressed sales share continues, it will reach that “normal” 2-percent mark in mid-2017.

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