Distressed home sales are at a seven-month low, according to a new bi-monthly report from CoreLogic titled, “U.S. Housing and Mortgage Trends.”
In June, the distressed share of home sales fell to 24 percent, down from the 35 percent peak seen in early 2009.
The decline was attributed primarily to homebuyer tax credit-induced home sales, which have since dropped off post-expiration.
“The report explains that with the expiration of the tax credit the distressed sale share is expected to rise moderately during the late summer and become more acute during the fall, when non-distressed seasonal rates begin to decline, further depressing the market,” the release said.
Las Vegas (61 percent) and Riverside (59 percent) continue to lead the nation in distressed sales for the largest 25 metropolitan markets, as of June.
Phoenix (53 percent), Sacramento (51 percent) and Orlando (50 percent) were the only remaining markets where distressed sales accounted for the majority of home sale activity.
Conversely, Nassau (5 percent) and New York City (8 percent) had the lowest distressed home sale share, followed by Baltimore (18 percent), Seattle (19 percent) and Minneapolis (19 percent).
With nearly one in four homeowners underwater and most unable to sell their homes, negative equity rates will also be a major factor slowing any semblance of a housing recovery.