Distressed Sales at Twenty-four Percent of Market

Based on information from the latest REALTORS® Confidence Index survey, 24 percent of respondents reported selling distressed property (foreclosed and short sales), down substantially from what had been the case a year or two ago. Cash sales accounted for roughly 40 percent of distressed sales (39 percent in August 2012).

What Does This Mean for REALTORS®? The shadow inventory, consisting of properties with mortgages about to enter default, has been mentioned in recent years as a major concern. In fact, availability of inventory available for sale — both distressed and non-distressed — continues to be limited, and distressed sales are declining. Inventories of homes for sale have declined to the 6-month level and in some areas are significantly less. The measured pace of the release of distressed properties to the market has bolstered housing prices.

  1. Thomas Lawler

    The RCI queston on distressed sales changed significantly in 2010,, and data on the distressd sales sare and especiallly the short sales share prior to 2010 from the RCI is obviously “bogus.” Everyone knows the RCI numbers are most bogus. Why not use the new reporrts to generate data that make sense?