Eight states reported a median sales price for distressed homes at less than half the sales price of non-distressed homes in August, according to a report recently released by RealtyTrac.
RealtyTrac defines a distressed sale as "the sale of a residential property that is actively in the foreclosure process or bank-owned when the sale is recorded." Distressed sales accounted for 13.5 percent of all single-family residential home sales in the U.S. in August, according to RealtyTrac.
The median distressed sales price for August was $129,200, an increase of 2 percent from July and an increase of 15 percent from August 2013. Nationwide, distressed homes were sold at an average discount of 37 percent compared with the median sales price of non-distressed homes for August, which RealtyTrac reported at $205,000.
The eight states in which distressed homes were sold at a discount of more than 50 percent were, according to the RealtyTrac report: West Virginia (66 percent, $44,500); Vermont (64%, $77,099); Michigan (61 percent, $53,000); Wisconsin (56 percent, $73,100); Pennsylvania (55 percent, $70,375), Ohio (55 percent, $61,000), Oklahoma (54 percent, $62,000), and Kentucky (52 percent, $60,000).
All 50 states and the District of Columbia reported a distressed home sales discount of at least 22 percent, according to RealtyTrac. The two states that tied for the lowest distressed home price discount with 22 percent were Arizona ($142,600) and Nevada ($142,000).
The metropolitan statistical area (among those with a population of 500,000 or more) that reported the highest distressed home price discount was Pittsburgh, with 72 percent ($35,000), according to RealtyTrac. Grand Rapids-Wyoming, Michigan, was close behind at 72 percent ($39,000). In all, 21 metro areas reported a distressed home price discount of 50 percent or more.