Sales of distressed residential properties continued heading toward their normal levels with another substantial year-over-year decline in July 2015, according to distressed sales data released by CoreLogic on Thursday. Distressed property sales accounted for 9 point 4 percent of all homes nationwide in July, which represented a decline of more than 2 full percentage points from July 2014's share of 11 point 5 percent. July 2015's share was a decline of zero point 4 percentage points from June's adjusted share of 9 point 8 percent.
REO sales comprised 6 point 1 percent of all home sales in July, their lowest level since September 2007 when they made up 5 point 2 percent of all home sales. Distressed sales made up 32 point 4 percent of all home sales nationwide at their peak in January 2009, with REO representing nearly 28 percent of that share. By comparison, the pre-crisis share of distressed sales was typically around 2 percent. CoreLogic estimates the distressed sales share would reach that level around mid-2019 if it continues to decline at the same year-over-year rate at which it declined in July 2015.
Fannie Mae and Freddie Mac completed another 19,485 foreclosure prevention actions in July, according to the FHFA's July 2015 Foreclosure Prevention Report released Thursday. The total of foreclosure prevention actions completed by the GSEs in July was more than double the number of foreclosure sales executed during the month, which totaled about 9 thousand. With July's total of nearly 20 thousand foreclosure prevention actions, the Enterprises have now completed 3 point 56 million such actions since the start of the conservatorship in September 2008.