Distressed Home Sales in St Louis Metro Area Fall Almost 30 Percent From A Year Ago

Distressed home sales in St Louis accounted for just under eleven percent (10.7%) of all home sales in the St Louis MSA in April 2014, according to data released just this morning from RealtyTrac.  This is a decline of 29.1% from April 2013 when distressed home sales in St Louis were responsible for 15.1% of all home sales.  Distressed home sales include short-sales (when sellers sell for less than they owe with the agreement of their lender), REO’s (bank-owned real estate acquired through foreclosure and now being resold) and foreclosure auction sales (when homes are actually sold at foreclosure).

Since a big chunk of the St Louis MSA lies across the Mississippi river in Illinois, I like to focus on the 5-county area that makes up the bulk of the St Louis real estate market on the Missouri side of the river.  These counties include St Louis, St Charles, Jefferson, Franklin as well as the city of St Louis.  As the table below shows, distressed home sales in April 2014 were down from a year ago in all of the counties.  For the 5 county core as a whole, on median, 10.1% of all home sales in April 2014 were distressed home sales, down 41.4% from a year ago when distressed sales accounted for 14.7% of the goal home sales in the 5-county core St Louis market.

Distressed home sales put a lot of downward pressure on home prices in St Louis, so this continued trend of fewer distressed sales is very much a positive for the St Louis housing market and should help the St Louis market sustain home prices as well as support home price increases when supported by market demand.

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446 comments to Distressed Home Sales in St Louis Metro Area Fall Almost 30 Percent From A Year Ago

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