Distressed Sales Drop to Lowest Level in Nearly 10 Years

Will reach normal mark by 2018

Cash sales held steady in January, but distressed sales dropped year-over-year, according to a new report from CoreLogic.

Cash sales accounted for 36.5% of total home sales in January, unchanged from the previous year. During the housing crisis, cash sales peaked at 46.6% of total home sales, however, historical norms rest at about 25%.

Real estate owned sales held the largest share of cash sales in January at 61.2%, followed by resales at 36.5% and newly constructed homes at 17.7%.

Click to Enlarge

Jan 2017

(Source: CoreLogic)

REOs make up 5.9% of distressed sales, while short sales make up 1.1%.

The distressed sales share fell to 7% in January, down 4.6 percentage points from January 2016. This marks the lowest distressed sales share for any month since September 2007.

The pre-crisis share of distressed sales hovered near 2%, which could be reached by early 2018 at the current rate of decrease.

Click to Enlarge

Jan 2017

(Source: CoreLogic)

Connecticut held the largest share of distressed sales in January at 17.3%, followed by Maryland at 16.3%, Michigan at 15.1%, New Jersey at 15.1% and Illinois at 12.8%.

Click to Enlarge

Jan 2017

(Source: CoreLogic)

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This entry was posted in Financing, Home Buying, Home Selling, Homeownership, Market Conditions and tagged , , , , , . Bookmark the permalink.

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