Distressed Sales Still about 50% of Total

This is an analysis of closed sales representing the proportion of 'distressed' sales (foreclosures & short sales) and 'arms length' to all units sold.  While the proportion of distressed sales remains fairly constant at about 50% of the total, it is remarkable to note that short sales are comprising a larger proportion of the Distressed segment.  In fact, short sales are 26% ahead of last year in proportion of units sold while foreclosure sales have declined by 6.7%.  The increased proportion of short sales could be a factor of more inventory as sellers elect to list their properties as short sales and perhaps a more receptive lender community processing and approving short sales more efficiently.

Single Family Home Values Dip Slightly

Home values declined in August according to the Case Shiller Value Index which I track monthly.  It could be that the three previous months' of gains were attributed to the buying frenzy created by the home-buyer tax credit (remember that?).  Transactions eligible for the credit needed to be closed by the end of July so it might be that August (the most recent month reported by the Index) represents a return to 'normal'.  I'm afraid optimism for a break-even year on value is waining.  

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