Distressed residential home sales continued their decline in March 2015, accounting for 12.1 percent of all residential sales – a drop of 3.2 percentage points year-over-year, according to CoreLogic's March 2015 Distressed Sales report released Monday. March's distressed sales share was the lowest percentage for any March since 2007. According to CoreLogic, distressed sales usually experience a month-over-month decline in March due to seasonality. This past March, the distressed sales share fell by 1.9 percentage points from February.
Of those distressed sales in March, 8.4 percent of home sales were REO transactions, while 3 .7 percent were short sales, totaling 12.1 percent. With the latest decline, the distressed sales share has fallen about 63 percent from their peak experienced in January 2009, when distressed sales made up 32.4 percent of all residential home sales. During that peak month, REO sales accounted for 27.9 percent of all home sales. The state with the largest distressed sales share in March 2015 was Michigan, where distressed sales made up 22 point 1 percent of all home sales.
Consumer attitudes toward housing vastly improved in May amid positive economic changes such as 280 thousand jobs added during the month, according to the May 2015 National Housing Survey released by Fannie Mae on Monday. The percentage of survey respondents who said it is a good time to buy a house rose back up to 66 percent, while those who say it is a good time to sell went up to a new survey high of 49 percent. Additionally, the survey found that 66 percent of respondents noted that they would prefer to buy rather than rent a home on their next move, while the share who would rent fell to 27 percent.