IRVINE, Calif.–Sales of distressed homes hit a nine-year low in 2016, with just 16.2% of single family homes and condos sold during the month being distressed sales, according to ATTOM Data Solutions.
Bank-owned (REO) sales accounted for 8.0% of all sales in 2016, down from 10.0% in 2015 to the lowest level since 2006 – a 10-year low.
But there are still pockets across the country with high rates of distressed homes. According to ATTOM, among 193 metropolitan statistical areas with a population of 200,000 or more and at least 100 distressed sales in 2016, the highest share of total distressed sales could be found in Atlantic City, N.J. (43.8%); Hagerstown-Martinsburg, Maryland-West Virginia (33.2%); Rockford, Ill. (29.2%); Montgomery, Alabama (29.2%); and Baltimore, (28.0%).
ATTOM reported that short sales – homes that sold for less than the combined amount of loans secured by the property – accounted for 5.5% of all home sales in 2016, down from 6.0% in 2015, the lowest level since 2008, an eight-year low.
Foreclosure auction sales (trustee's sales or sheriff's sales) selling to third party investors (not including those going back to the foreclosing lender) accounted for 2.8% of all home sales in 2016, down from 2.9% in 2015 to the lowest level since 2007, the company added.