The National Association of Realtors began tracking distressed sales in October of 2008. When the housing market hit its lowest point in 2012, distressed sales accounted for 35% of all homes sold. This October, distressed sales amounted to only 6% of all homes sold. That is an improvement from 9% in October of 2014, and the lowest ever, since NAR started keeping tabs on distressed sales. Now that is something to be thankful for!
The National Association of Realtors (NAR) just released their Existing Home Sales Report revealing that distressed property sales accounted for 6% of sales in October. This is down from 9% in 2014 and 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.
Existing Home Sales Up Year-Over-Year
Mortgage interest rates remained below 4% in October prompting existing home sales to stay at a healthy annual pace of 5.36 million. Year-over-year sales were up 3.9%.Inventory of homes for sale remain below the 6-month supply that is necessary for a normal market, as they fell 2.3% to a 4.8-months supply. The shortage in inventory has contributed to the median home price rising an additional 5.8% to $219,600.
NAR’s Chief Economist, Lawrence Yun had this to say about the lack of inventory:
"New and existing-home supply has struggled to improve so far this Fall, leading to few choices for buyers and no easement of the ongoing affordability concerns still prevalent in some markets."There is good news though, as Yun went on to say:
"As long as solid job creation continues, a gradual easing of credit standards even with moderately higher mortgage rates should support steady demand and sales continuing to rise above a year ago."
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