The RealtyTrac staff released its Q3 2016 U.S. Home Sales Report late last week, which showed that distressed sales such as bank-owned (REO) sales, sales of homes actively in foreclosure, and short sales, accounted for 12.9% of all U.S. single family home and condo sales.
That number is down from 15% in the previous quarter of 2016, and down from 15.9% in Q3 of 2015. The lowest share of distressed home sales was Q3 in 2007, when distressed sales accounted 12.3% of all sales, and the peak was in Q1 of 2009, when 43.9% of all U.S. single family home and sales were distressed sales
“Distressed inventory for sale is virtually non-existent in many of the nation’s hottest housing markets, and when a distressed property is listed for sale in those markets it often sells quickly and at little or no discount,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “The scarcity of discounted distressed inventory is chasing away cash buyers and other bargain hunters, but it’s certainly good news for home sellers, who nationwide realized the biggest home price gains since purchase in nine years. We are seeing the average seller home price gain since purchase start to wane in some of the highest-priced markets where appreciation is beginning to cool, indicating those markets are past their prime as sellers’ markets.”