Distressed sales continue to be a major factor in the local real estate market, but are beginning to show signs of easing. Overall residential unit sales for the third quarter of 2012 are up 41% compared to the same period last year. Additionally, 31% of the entire residential market is distressed, down 9% from last year, and down a full 20 points from the first quarter of this year.
Another good sign in the distressed sales segment is the market’s relatively low inventory of bank-owned properties. Based on our current absorption rate, there is only a 2.5 month inventory of bank-owned residential listings currently on the market compared to a 14 month inventory for the overall residential market.
The number of distressed listings in the active market has also dropped to 7% this month, the lowest in two years.