U.S. Cities With the Most Distressed Home Sales

October 28, 2014 by Paul Ausick

183080644
Source: Thinkstock
Distressed home sales in the United States dropped 1% in September, compared with August, and 19% compared with September 2013, according to data released Tuesday by RealtyTrac. Short sales and foreclosure sales account for 13% of all third-quarter sales, the lowest total since the first quarter of 2011. Las Vegas posted the highest proportion of short and distressed sales in the quarter. Distressed sales include sales of a property in the foreclosure process or bank-owned when the sale is recorded.

The metro areas with high proportions of short sales (price is lower that total mortgage amount due) include Las Vegas (10.5%); Lakeland, Fla. (10.4%); Cape Coral, Fla. (10.4%); Orlando (10.0%); and Tampa (9.7%). Short sales accounted for 3.8% of all sales in the third quarter.

Sales of bank-owned properties accounted for 7.8% of all home sales in the third quarter. Metropolitan areas with the highest percentage of bank-owned sales were Stockton, Calif. (26.1%); Modesto, Calif. (25.2%); Las Vegas (23.2%); Riverside-San Bernardino, Calif. (19.7%); and Bakersfield, Calif. (18.5%).

Adding short sales and distressed sales together, Las Vegas (34.9%) is the metro area with the highest percentage, followed by Stockton (31.8%), Modesto (31.2%), Lakeland (26.1%) and Jacksonville, Fla. (26.1%).

RealtyTrac also released data on the largest year-over-year September increases in median home prices. House prices rose the most in Detroit (35%), Austin (28%), Cincinnati (27%), Cleveland (25%) and Stockton (21%). Median home prices increased by less than 10% year-over-year in 59 of the 102 metro areas tracked by RealtyTrac. Los Angeles, Denver, Phoenix, San Diego and Portland all fell into that group.

A RealtyTrac executive said:

Median home prices nationally in September were boosted by a new low in the share of distressed sales during the third quarter, resulting in fewer home sales on the lower end. The share of homes selling above $200,000 is up 7 percent from a year ago, and the share of homes selling above $500,000 is up 15 percent from a year ago.

The median price of a distressed property in September was $130,000 nationwide, 37% below the non-distressed median of $205,000.

ALSO READ: America’s Most Polluted Housing Markets

ALERT: Take This Retirement Quiz Now  (Sponsored)

Take the quiz below to get matched with a financial advisor today.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Take the retirement quiz right here.

Posted in Housing | Comments Off on U.S. Cities With the Most Distressed Home Sales