Distressed home sales typically decrease around this time of year due to seasonal factors, but short sales and sales of real estate owned (REO) properties this June fell to their lowest June rates since 2007, CoreLogic reported this week.

Takeaways:

  • Short sales and sales of real estate owned (REO) properties this June fell to their lowest June rates since 2007, CoreLogic reported this week.
  • The property data provider reported an ongoing shift away from REO sales in particular.
  • CoreLogic said that at their peak in January 2009, distressed sales totaled 32.3 percent of all sales, with REO sales representing 27.9 percent of that share.

Distressed home sales typically decrease around this time of year due to seasonal factors, but short sales and sales of real estate owned (REO) properties this June fell to their lowest June rates since 2007, CoreLogic reported this week.

Distressed sales accounted for 9.4 percent of total home sales nationally in June, a decrease of 2.4 percentage points from the same month last year and 0.9 percentage point from the previous month. That’s the lowest monthly share reported in the month of June since 2007, when the share was 4.9 percent, CoreLogic said.

The property data provider reported an ongoing shift away from REO sales in particular. REO sales accounted for 6 percent of total home sales in June, falling to their lowest share of all sales since September 2007, when they represented 5.2 percent of all sales.

The share of short sales was more stable, CoreLogic reported. After falling to below 4 percent in mid-2014, they have hovered around that figure ever since, and in June, the share was 3.4 percent.

unnamed

To give some context into how the housing market collapse impacted sales of distressed properties, CoreLogic said that at their peak in January 2009, distressed sales totaled 32.3 percent of all sales, with REO sales representing 27.9 percent of that share.

Precrisis, the share of distressed sales was traditionally about 2 percent. If the current year-over-year decrease in the distressed sales share continues, we will hit that “normal” 2 percent mark in mid-2018, CoreLogic predicted.

States struggling with the largest share of distressed sales are:

  • Florida (21 percent of all sales)
  • Michigan (20.7 percent)
  • Maryland (20.5 percent)
  • Connecticut (19.3 percent)
  • Illinois (19.1 percent)

California saw the largest improvement of any state, falling 58.3 percentage points from its January 2009 peak of 67.4 percent. Nevada also saw a 6.8 percentage point drop compared to the same period of last year.

Only North Dakota and Washington, D.C., are even close to their precrisis numbers, with each reporting distressed sales shares within 1 percentage point, CoreLogic said.

Email Amy Swinderman.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
New January Connect speakers added: M. Ryan Gorman, Josh Team, Glenn Kelman and more.SEE THE SPEAKERS×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription