REO Share’s Continued Decline Indicates a ‘Healing’ Market

DSNews posted an article siting some statistics from Corelogic which noted that REO sales declined 13.4% from February to March. Real Estate Owned or REO is a term used in the United States to describe a class of property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction. This class of properties has been a very high percentage of the total sales throughout the recovery. With these numbers on the decline this gives way for the standard arms length transactions to gain momentum.

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"The drop in REOs indicates that the market continues to heal and normalize as it pertains to distressed assets," said Sam Khater, deputy chief economist at CoreLogic. "But the Great Recession will still have cast a long shadow on the real estate market and REO sales will remain elevated for years as hardest hit areas nd slow to react areas continue to recover."