For March 2016, distressed homes (made up of REO and short sales) accounted for only 9.9% of those sold, a 2.7% drop from March 2015 and a 1.7% drop from February 2016. CoreLogic staffer Molly Boesel reports on this decrease that saw REO sales fall to their lowest levels since March 2007.
If distressed home sales continue to fall at this rate they will reach their normal 2% mark in mid-2018. While most states saw their distressed home sales decrease, they still make up a high percentage of sales in some states:
All but eight states recorded lower distressed sales shares in March 2016 compared with a year earlier. Maryland had the largest share of distressed sales of any state at 19.8 percent in March 2016, followed by Connecticut (18.9 percent), Michigan (18.1 percent), Florida (17 percent) and Illinois (16.7 percent). North Dakota had the smallest distressed sales share at 2.4 percent.