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.
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.