Distressed sales higher in R.I., Prov. metro, in April compared with U.S. distressed sale rate

CORELOGIC said distressed sales accounted for 12.3 percent of all homes sold in Rhode Island in April, and 10 percent of all homes sold in the Providence-Warwick-Fall River metropolitan area that same month. Distressed sales accounted for 8.8 percent of all homes sold nationally in April 2016. / COURTESY CORELOGIC
CORELOGIC said distressed sales accounted for 12.3 percent of all homes sold in Rhode Island in April, and 10 percent of all homes sold in the Providence-Warwick-Fall River metropolitan area that same month. Distressed sales accounted for 8.8 percent of all homes sold nationally in April 2016. / COURTESY CORELOGIC

(Updated 12:46 p.m.)
PROVIDENCE – Distressed sales accounted for 12.3 percent of all homes sold in Rhode Island in April, and 10 percent of all homes sold in the Providence-Warwick-Fall River metropolitan area that same month, CoreLogic said this week.
Those percentages are higher than 8.8 percent, which represents the portion of distressed homes sold nationally in April, a drop of 3 percentage points over the year.
Still, the percentage of distressed sales in Rhode Island and the Providence metro are following national trends as they declined over the year. In April 2015, distressed sales accounted for 17.6 percent of total home sales in Rhode Island, and 16.2 percent of total home sales in the Providence metro.

Distressed sales include real estate-owned and short sales.

Within the distressed category, REO sales accounted for nearly 6 percent and short sales accounted for 3 percent of total U.S. home sales in April 2016. The REO sales share, at 2.4 percentage points below the April 2015 share, is the lowest for the month of April since 2007. The short sales share fell below 4 percent in mid-2014, remaining in the 3-4 percent range since then.

Distressed sales totaled 32.4 percent of all sales at its peak in January 2009, with REO sales representing 27.9 percent of that share.

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CoreLogic said there will always be some level of distress in the housing market, noting that when the share of distressed sales is high, it can pull down the prices of non-distressed sales.

The pre-crisis share of distressed sales was traditionally about 2 percent, and CoreLogic said if current trends continue, that “normal” 2 percent mark should be reached in mid-2017.

All but seven states recorded lower distressed sales shares in April 2016 compared with a year earlier.

Maryland had the largest share of distressed sales of any state at 19.5 percent in April, followed by Connecticut at 18.6 percent, Michigan at 18.1 percent, Florida at 16.4 percent and Illinois, 16.3 percent. North Dakota had the smallest distressed sales share at 2.4 percent.

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