Distressed sales continue to decrease, and are now at their lowest level since September 2007, accounting for only 9.3% of total sales in August 2015 according to Core Logic's Molly Boesel. That share is down 2.3 percentage points from the same time last year, and down 0.4 percentage points from July 2015. 

Real estate owned sales accounted for 6% of total sales, and short sales made up 3.3% of the distressed sale category. Maryland had the largest share of distressed sales at 20.8%.

At its peak in January 2009, distressed sales totaled 32.4% of all sales, with REO sales representing 27.9% of that share. While distressed sales play an important role in clearing the housing market of foreclosed properties, they sell at a discount to non-distressed sales, and when the share of distressed sales is high, they can pull down the prices of non-distressed sales.

... the pre-crisis share of distressed sales was traditionally about 2%. If the current year-over-year decrease in the distressed sales share continues, it would reach that “normal” 2-percent mark in mid-2018.

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