Distressed sales — foreclosures and short sales of homes sold for less than the amount owed — accounted for 17.3 percent of bay area sales in May. That was more than twice the national rate and the third highest rate among the 25 largest metro areas, CoreLogic reported Tuesday.
Only the Baltimore and Chicago regions had a higher percentage of distressed sales, at 19 percent and 18 percent respectively.
“While distressed sales play an important role in clearing the housing market of foreclosed properties, they sell at a discount … and can pull down the prices” of non-distressed homes, CoreLogic said.
At the peak of the housing crisis in 2009, distressed sales made up 32.4 percent of all home sales nationally. In May, the rate stood at just 8 percent and it is on target to reach the “normal,” pre-crisis peak in mid 2019.