REALTORS® Reported Distressed Sales at 10 Percent of Market in September 2014

With rising home values and fewer foreclosures, the share of distressed sales to existing home sales continued to decline, according to data from the September 2014 REALTORS® Confidence Index Survey:  http://www.realtor.org/reports/realtors-confidence-index

In September 2014, distressed sales accounted for 10 percent of sales:  7 percent of reported sales were foreclosed properties, and about 3 percent were short sales[1]. The decline of  distressed properties on the market explains to some degree why investment sales and all-cash sales have been on the decline.

Distressed property sold at a 14 percent average discount  for the past 12 months.  Properties in  “above average” condition were discounted by an average of 10-12 percent, while properties in “below average” condition were discounted at an average of 14-20 percent.