Two new reports out today show that bank-owned properties are growing and becoming a greater share of total home sales.
Clear Capital refers to this as "REO Saturation" in its report.
Some cities with the highest "saturation":
- San Jose, CA (24.6 percent)
- Houston, TX (40.5 percent)
- Las Vegas, NV (49.1 percent)
- Memphis, TN (43.3 percent)
- St. Louis, MO (39.6 percent)
Another report from First American CoreLogic shows distressed sales accounted for 29 percent of all sales nationwide.
That's not quite the 32 percent peak we saw in early 2009, but it's creeping back up from 23 percent in July. Interesting that it was already creeping up even before the government's short sale incentive program went into effect at the beginning of this week.
So what does that mean for home prices? FACL's chart is pretty clear: