Distressed sales – real estate owned (REO) and short sale transactions – are at a seven-month low, CoreLogic reports, attributing the low levels primarily to tax-credit-induced sales increases. With the expiration of the tax credit, the share of distressed sales is expected to rise in the fall, the company says.
In June, the distressed-sale share fell to 24% of overall sales – a decline from the peak of 35% that occurred in early 2009. As of June, Las Vegas and Riverside, Calif., led the nation's largest metro markets in terms of distressed-sale percentages, at 61% and 59%, respectively.
Phoenix; Sacramento, Calif.; and Orlando, Fla., were the only other markets where distressed sales accounted for the majority of home-sales activity. At the other end of the spectrum, Nassau, N.Y., and New York City had the lowest distressed-sale shares, at 5% and 8%, respectively.
The distressed-sale data are part of CoreLogic's inaugural U.S. Housing and Mortgage Trends report, a bimonthly research report on housing sales, valuation, negative equity and foreclosure activity and trends.