In a disconcerting turn of events, the amount of homes Sold as Foreclosures or Short Sales reached record numbers in September of 2008 according to statistics complied by the Grand Rapids Association of Realtors. With a total of just over 800 homes Sold, 420 of them were distress sales.
This reverses a trend that I have been following quite closely for the past year. Prior to this, the highest percentage of homes Sold through Foreclosure or Short Sale was about 49.5% in January of 2008. To provide perspective, at the beginning of 2007, this type of transaction accounted for approximately 14-15% of the total sales volume on the Grand Rapids Association of Realtors MLS system.
Within the preceeding five month period, the number of homes sold in distress had averaged around 44%. This makes the dramatic jump in September to almost 54% more troubling. The volume of homes traded on the market was also down at 810 homes Sold.