Following the financial crisis in 2008 and 2009, the real estate market saw a bust in the amount of distresses homes for sale. Distressed homes are defined as bank foreclosures and short sales (pre-foreclosure). In 2009, distressed properties accounted for 32.4 percent of all sales, which is an astounding figure when compared to years past when this amount was only about 2 percent of real estate sales.
The jump in the number of distressed properties was caused by collapsing home values and sales prices usually consisted of large price discounts which in turn encouraged real estate investors eagerly looking to take advantage of real estate bargains. However, today’s home values for the most part have bounced back from the down market following the crash.
This market rebound has lead to a huge decrease in the amount of distressed properties for sale and a boost in the amount of traditional buyers active in the real estate market. In the past few years, the real estate housing market has been steadily improving, properties have regained value, and home buyers and home sellers have once again begun buying and selling.
CoreLogic released findings showing further proof of the decline in distressed properties in a recent report indicating distressed sales accounted for just 9.4 percent of all sales nationwide in July of this year, representing a 2.1 percent drop as compared to the previous year and a 0.4 percent drop from June.
The amount is still higher than historic normal figures, however, the improvement is huge and indicates at the current path, distressed sales should fall back to normal percentages within the next few years. You can read more here..