The National Association of Realtors posted about the Declining Distressed Sales. This is obvious for anyone shopping the market, but I am always curious on what the Twin Cities market looks like in comparison to the National figures.
Lawrence Yun, Chief Economist for NAR published a post today:
Distressed property sales reached a new cyclical low in the past two months. Only 15 percent of all transactions were classified as being due to a foreclosure or needing a short-sale approval from a bank…
…Better news yet – distressed sales will hit 11 to 13 percent in 2014, and then fall to a single-digit percentage in 2015. Why? The number of seriously delinquent mortgages in the pipeline has been steadily falling…
I took a look at some data from the Minneapolis Area Association of Realtors and ran some rough calculations. It looks like about 27% of the homes for sale in Minneapolis/St Paul are distressed. Down substantially from 59% in 2012 and 64% in 2013.
This may not by comparing “like” data that NAR was using. Below is the information I am basing these figures from, Homes for Sale in August year over year. NAR may have run year to date totals and “Sold” or “Pending Properties”. Even thought this may not be an apples to apples comparison, it does put into perspective improving market conditions locally.