Dennis Norman
A report by CoreLogic shows that in June 2010 almost one in five (19.3 percent) of the home sales in St. Louis are distressed home sales, such as foreclosure or a short sale. The report cautions that recent data showing improvements in negative equity, serious mortgage delinquency and a decrease in market share of short-sales, has been distorted as a result of the short-term boost in the “non-distressed” housing market by the homebuyer tax credit program, which recently ended.The CoreLogic report also points out that the slight decrease in negative equity in the second quarter was primarily driven by foreclosures removing a chunk of them from the stats and not by price appreciation. The report also predicts that there are many more distressed sales coming in the near future and that the share of the housing market attributable to distressed sales will rise in the fall of this year.
Other highlights from the report:
- St. Louis REO sales (bank owned homes that were sold) in June decreased 16.2 percent from the year before.
- St. Louis short sales in June decreased 6.8 percent from the year before.
- Overall home sales in St. Louis in June decreased 6.9 percent from the year before.
- 5.2 percent of St. Louis borrowers were 90+ days delinquent on their mortgage in June.
- 16.5 percent of St. Louis borrowers are underwater (have negative equity in their homes)
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