With increases this year in home sales, the backlog of problem properties in the Dallas housing market has declined substantially.
As of April, the Dallas area had only a 4.6-month inventory of distressed houses for sale. That’s less than half the rate among the 24 largest U.S. cities, according to a new report by researchers at CoreLogic.
Only Phoenix at 4 months and Denver with a 4.3-month supply had fewer previously foreclosed or otherwise distressed homes on the market in April.
Nationwide, the inventory is more than 10 months among the 25 largest cities, according to CoreLogic.
With the drop in foreclosed home inventories, only about 18 percent of the most recent Dallas-area home sales were distressed properties.
That’s better than the nationwide rate of almost 24 percent, CoreLogic found.
Also, the Dallas area in April had one of the lowest percentages of negative equity homes – 12.1 percent. Only four U.S. markets have lower negative home equity shares.
In 2009, 30 percent of Dallas-area homeowners with mortgages owed more than their property is worth.
Homeowners who are underwater with their mortgages are considered more likely to allow their property to go into foreclosure.
As the share home distressed property sales declines, home prices in many markets are rebounding.
Median home sales prices in North Texas were up by 9 percent in April and May from year earlier levels.
“Home prices are quickly rebounding thanks to a drop in the share of real estate owned (REO) properties and the decline in months’ supply of unsold inventory,” CoreLogic senior economist Sam Kahter said in the report. “When distressed sales are excluded, home prices in March and April are improving at the best rate since late 2006, early 2007.”