Reply #51: Report: Distressed Homes Accounted for Nearly Half of January Sales

[Demeter]

http://www.dsnews.com/articles/report-distressed-sales-accounted-for-nearly-half-of-january-home-2011-02-22

The distressed property index tracked by the two companies’ HousingPulse survey indicates that the share of sales transactions involving distressed homes – generally REOs and short sales – climbed from 47.2 percent in December to 49.6 percent in January. In November, the distressed sales share registered 44.5 percent.

According to the report, at the current rate of increase, distressed property transactions could account for the majority of home sales within just a few months.

Already, in the key state of California, the survey found distressed property transactions account for 66 percent of the market. In Florida, distressed property sales are making up 63 percent of the market, while in the combined area of Arizona and Nevada, distressed property transactions are a staggering 72 percent of home sales, according to the industry report....“I have noticed that less than 40 percent of what is on the market is property that is just ‘For Sale’ and not a short sale or REO,” commented one agent in California.

“We are primarily an REO/short sale market with about 20 percent conventional sale at this juncture,” added an agent in Nevada.

“Short sales occupy 65 percent of market share, REOs occupy 30 percent of market share, non-distressed are 5 percent or less,” reported another agent in Nevada.