Distressed Sales Continue to Fall in Portland OR

In line with the broad decline in foreclosure inventory, distressed sales continue to make up for a smaller share of overall residential sales. Last month, distressed homes – foreclosures and short sales – accounted for 12% of sales, down from 15% the month previous. There is the lowest share since monthly tracking began in October 2008; they were 23% in August 2012.

Distressed Sales Continue To Fall

Ongoing declines in the share of distressed sales are responsible for some of the growth in median price. For the past 12 months, properties in “above-average” condition have been discounted by an average of 10%-11%, while properties in “below average” condition were discounted at an average of 15%-20% percent. Last month 8% of sales were foreclosures, and 4% were short sales. Foreclosures sold for an average discount of 16% below market value in August, while short sales were discounted 12%.

The median time on market for all homes was 43-days last month, little changed from 42-days in July, but is much faster than the 70-days on market in August 2012. Short sales were on the market for a median of 98-days, while foreclosures typically sold in 52-days and non-distressed homes took 41-days. Almost 43% percent of homes sold last month were on the market for less than a month.

First-time buyers accounted for 28% of purchases, down from 29 % amonth earlier and 31% percent in August 2012. All-cash sales comprised 32% percent of transactions, up from 31% in the previous month and 27% in August 2012. Individual investors, who account for many cash sales, purchased 17% of homes, compared with 16% the month before and 18% in August 2012. Last month, three out of four investors paid cash.