This is the percentage of homes sales that take place under some circumstances placing urgency on the seller, such as impending foreclosure, divorce or relocation. Such urgency means the sale is often short, discounted or even at a loss.
Overall, this number has been falling since the depths of the housing crisis: Distressed sales accounted for 50% of transactions in 2009 and only 25% of late. And in the cities that provided data to Movoto, the average percentage was just over 13% in August.
Best: Nashville, Tenn.; Fort Worth and Houston, Texas
Head down south, and distressed sales haven’t been much of an issue at all. In Nashville, Fort Worth and Houston, only 1% of August sales took place under distressed conditions.
Worst: Long Beach, Calif.
Long Beach, on the other hand, had the greatest percentage of distressed home sales in both July and August, with 19% and 18%, respectively. Detroit, once again, and Phoenix were both also in the back of the pack with 16% distressed last month.
Banks are also sitting on a large number of distressed properties that they haven’t put on the market yet — properties that could also further drive down prices when if flood the market.