As housing's recovery got its start a couple of years ago, the first sign of healing was that distressed home sales started to drop as a share of the total market of home property transactions.
For the past few years, the shrinkage of that distressed home sale segment--on a percentage basis and in absolute numbers--as been one of the key indicators that the recovery has progressed in healthy, but gradual, fashion. Now it's time to start becoming a bit concerned that the pace of healing has slowed to a significant degree. CoreLogic's Molley Boesel writes:
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-2019.
So, we have 24 more months before this measure reaches "normal."