Key Highlights

  • Distressed home sales including REO sales represented 7.8% of all single-family home and condo sales in 2020
  • Latest figure less that 25% of peak in 2011 and lowest point since 2005, according to ATTOM Data Solutions
  • FHA and VA loan types at higher delinquency rates since Great Recession

Distressed Home Sales in 2020 Represented Lowest Share of All Sales Since 2005

In ATTOM Data Solutions’ 2020 Year-End US Home Sales Reportjust released, ATTOMindicated that distressed home sales including bank-owned REO sales, third-party foreclosure auction sales and short sales represented 7.8% of all US single-family home and condominium sales in 2020.

This 7.8% share of all distressed sales in 2020 accounted for -25% of the distressed sales peak of 38.6% in 2011 and the lowest share of all sales since 2005.

States Where Distressed Sales Accounted for Largest Portion

States with the largest portion of distressed sales in 2020 took place included:

  • Connecticut – 15.3%
  • Rhode Island – 14.7%
  • Delaware – 13.8%
  • Illinois – 12.6%
  • Maryland – 12.6%

States Where Distressed Sales Represented Smallest Portion

 States with the smallest portion of distressed sales relative to the total single-family home and condo sales in 2020 included:

  • Utah – 2.1%
  • Maine – 2.2%
  • Idaho – 2.6%
  • Montana – 3.2%
  • Mississippi – 3.5%

Top 10 Counties with Populations of +50,000 Having Largest Share of Distressed Home Sales

 Counties with populations of +50,000 that had the largest share of distressed home sales relative to total home sales in 2020 included:

  • McCracken County KY – 33.3%
  • Blount County AL- 25.0%
  • Bulloch County GA – 22.9%
  • Ward County ND – 17.8%
  • Ashland County OH – 17.6%
  • Franklin County MA – 17.5%
  • Jefferson County AR – 15.4%
  • San Juan County NM – 14.3%
  • Wilkes County NC – 14.3%
  • Jackson County AL – 14.1%

Serious Delinquency Rate by Loan Types

Serious delinquency rates, mortgage payments that are 90+ days, for Federal Housing Authority (FHA), US Department of Veteran Affairs (VA)and conventional loans were 11.7%, 6.1% and 3.1% respectively.  All loan types in serious delinquency increased by the end of 2020 but FHA and VA loans in serious delinquency reach highs not seen since post-Great Recession, according to CoreLogic’s latest Loan Performance Insights Report.

 Agents, keep an eye on FHA and VA loan types in the coming months.

Thanks to ATTOM Data Solutions and CoreLogic.

 

 


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