Sales Of Distressed Properties Hit New Low

Dated: 10/24/2016

Views: 177

Distressed Property


The National Association of Realtors (NAR) recently released their latest Existing Home Sales Report revealing that distressed property sales accounted for 4% of sales in September. This is down from 7% in 2015, and is the lowest figure since NAR began tracking distressed sales in October 2008.

Below is a graph that shows just how far the market has come since January 2012 when distressed sales accounted for 35% of all sales.

Percentage of Distressed Property SalesExisting Home Sales Hit 2nd Highest Figure Since June 

Mortgage interest rates remained well below 4% in September at 3.46%, prompting existing home sales to stay at a healthy annual pace of 5.47 million. Month-over-month sales were up 3.2%.

Inventory of homes for sale remains below the 6-month supply that is necessary for a normal market, as it fell 2.2% to a 4.5-month supply. The shortage in inventory has contributed to the median home price rising an additional 5.6% to $234,200.

NAR’s Chief Economist, Lawrence Yun had this to say about the lack of inventory:

"Inventory has been extremely tight all year and is unlikely to improve now that the seasonal decline in listings is about to kick in."

There is good news though, as Yun went on to say:

"There's hope the leap in sales to first-time buyers can stick through the rest of the year and into next spring. The market fundamentals — primarily consistent job gains and affordable mortgage rates — are there for the steady rise in first-timers needed to finally reverse the decline in the homeownership rate."  

Bottom Line

If you are debating putting your home on the market this year, now may be the time. Buyers are still out there looking for their dream home. Let’s get together to determine your best plan.


Leah Wright - WA Buyer Specialist

Leah, an Arizona native, decided to make the beautiful Pacific Northwest her home in the winter of 2011 after attending a wedding in Woodland and falling in love with the locals and lush surroundings.....

Want to Advertise on this Site?

Latest Blog Posts

The Country Is Buying Homes And So Should You

The Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index attempts to answer the age old question: In today’s housing market, is it better to rent or buy a home? They attempt this by examining

Read More

Four Bedroom Home In Battle Ground Now Pending

Four Bedroom Home on Large Lot in Battle Ground OverviewMapsPhotos $365,000 Single Family

Read More

Sold In 4 Days For 22K Over List Price

Adorable Vintage Move-In Ready Home OverviewMapsPhotos $227,500 Single Family

Read More

Congratulations To The Warnke Family On Finding Their New Home

Congratulations to the Warnke Family on Finding Their New Home!Getting to help clients find their new home is very rewarding. I especially enjoyed getting to help this

Read More