CoreLogic analyst Molly Boesel dives into a monthly benchmark data point that illustrates housings continued path of healing: the percentage of total residential sales that are in the "distress" bucket, including real estate owned by banks and short sales. An improving market means that fewer sales are motivated by distress (failed loans, foreclosures, defaults, etc.).
It also means there's less opportunistic below-market buying, which is the other side of the coin. Boesel's top lines include the fact that almost all states recorded lower levels of distressed sales, both on a sequential month to month basis and year on year:
- Distressed sales were 9.7 percent and REO sales were 6.4 percent of total sales in September 2015
- Maryland still on top with the largest share of distressed sales among all states at 20.7 percent
- Distressed sales share should reach pre-crisis level in 2018