CoreLogic: R.I., Prov. metro report lower distressed sales in September

CORELOGIC SAID that nationally, distressed sales as a percentage of total sales decreased in September over the year to 9.7 percent of total home sales. / COURTESY CORELOGIC
CORELOGIC SAID that nationally, distressed sales as a percentage of total sales decreased in September over the year to 9.7 percent of total home sales. / COURTESY CORELOGIC

PROVIDENCE – Most states, including Rhode Island, had lower distressed sales in September compared with a year ago, CoreLogic said Wednesday.
Rhode Island’s distressed sales, which are real estate-owned and short sales, represented 12.8 percent of total sales in September, a decline of 2.8 percentage points compared with September 2014, CoreLogic said.
The Providence-Warwick metropolitan area showed a similar pattern, with distressed sales accounting for 11.6 percent of total sales, a 1.9 percentage point decline year over year.
While declines in distressed sales were reported in Rhode Island and the Providence metro, rates were still higher than the national average, CoreLogic said.
Nationally, distressed sales accounted for 9.7 percent of total home sales, a decline of 2.4 percentage points over the year.
CoreLogic said all but eight states recorded lower distressed sales shares in September compared with a year ago. Maryland had the largest share of distressed sales of any state at 20.7 percent in September. North Dakota had the smallest distressed sales share at 2.7 percent.
Within the distressed category nationally, real estate-owned sales accounted for 6.4 percent and short sales made up 3.3 percent of total home sales in September.
In Rhode Island, real estate-owned sales accounted for 4.6 percent of total sales, and short sales accounted for 8.2 percent of total home sales in September. In the Providence metro, the respective rates were 5.9 and 5.7 percent.

Nationally, the REO sales share was the lowest since October 2007 when it was 6.2 percent. At its peak in January 2009, distressed sales were 32.4 percent of all sales, with REO sales representing 27.9 percent of that share.
“While distressed sales play an important role in clearing the housing market of foreclosed properties, they sell at a discount to non-distressed sales, and when the share of distressed sales is high, it can pull down the prices of non-distressed sales,” CoreLogic said in a news release.
CoreLogic said the pre-crisis share of distressed sales was traditionally about 2 percent. If the current downward trend continues, the share of distressed sales will reach that “normal” 2 percent mark in mid-2018, it said.

No posts to display