Distressed properties are the properties that are bank owned foreclosures and short sales. After the housing bubble burst in the middle of 2007 we saw a ton of distressed property sales. In fact, these properties were representing a majority of sales. Over the last few years the market is recovering and we are seeing less and less and distressed property sales. The latest reports show that in the last few months these properties are making up only 15% of sales.
Foreclosures are down 20% from last year and loans that are more than 90 days delinquent are down by almost 24% from last year. This is further evidence that we truely are in recovery.
As you can imagine, this had dramatically changed the housing market. During the bust, when distressed sales were high, this caused homes to sell for far less than they appraised for. Because there are fewer of these homes on the market, we are seeing multiple offers, which in turm drives the prices up. Overall this is good news as a stable market is good news for home owners and buyers. Owners, you don't have to worry as much about your neighbor's house sitting emply for long periods of times and often going into disrepair bringing home values in your neighborhood down. Buyers, a heathy market brings assurance that buying a home is a good investment and if you need to sell your home in the next few years, you don't have to worry about your home value dropping.
As always, if you have specific questions about what this information means to you, I'd love to chat!