Earlier today we saw that existing home sales climbed 0.6% to a rate of 4.97 million units in April. This missed expectations but was the highest pace since November 2009.
But the best news in the report was that distressed sales, which includes foreclosures and short sales, only accounted for 18% of sales.
This was down from 21% in March, and 28% a year ago.
Foreclosures accounted for 11% of sales and sold for an average discount of 16% below market value. Short sales accounted for 7% and sold at a 14% discount.
“That’s the lowest reading since the NAR started collecting these data in 2008,” wrote Capital Economics’ Paul Diggle.
“Just 15 months ago, distressed sales accounted for 35% of all existing home sales. Put another way, distressed sales are down 29% y/y while non-distressed sales are up 25%. The market is starting to take on a semblance of normality.”
He also pointed out that inventory while low, is rising as rising home prices are boosting confidence. “The increase in the seasonally-adjusted months’ supply of unsold stock in April, from 4.9 to 5, was slight and not a threat to continued house price gains.”
Here’s a look at existing homes for sale since 1983: