CoreLogic’s November 2015 Distressed Sales data reported that REO and short sales combined made up 12 percent of all residential sales for the month, a decline of 2 percentage points from the previous November. The distressed sales share for November 2015 was approximately one-third of its peak reached in January 2009, when REO properties and short sales made up almost one-third of all residential home sales.
All but nine states reported a year-over-year decline in distressed sales share from November 2014 to November 2015. Nevada experienced the largest decline at 5 point 4 percentage points. There is no question that distressed sales are way down due to the steady decline in available inventory over the last seven years. CoreLogic estimates the distressed sales share will reach its pre-crisis level of around 2 percent in mid-2019 if the current rate of year-over-year decline continues.
One of the major topics expected to be covered when Federal Reserve Chairman Janet Yellen testifies before Congress in early February is the Fed’s perceived lack of transparency when it comes to monetary policy, which was a main point of contention in Yellen’s previous Congressional testimony. Yellen is scheduled to appear before the House Financial Services Committee on February 10 for the Fed’s semi-annual Monetary Policy Report to Congress.