Press Release
New York Fed Releases an Assessment of the Distressed Residential Real Estate Situation
October 5, 2012

NEW YORK—The Federal Reserve Bank of New York today released new data1 about the distressed residential real estate market, including the inventory of real estate owned properties, or REO. Through interactive maps, viewers can explore the current status and potential future scenarios for REO properties at the national and state-specific levels.  Another interactive map examines the magnitude and recent history of distressed sales in New York, New Jersey and Connecticut at the state and county level.

National REO Inventory Scenarios:
The first graphic explores three possible scenarios for REO property inventories based on length of time required to complete the foreclosures process:

  • If the average number of days that properties remain seriously delinquent and in foreclosure continues to rise nationally through 2013, REO inventories in most states would decline. However, a limited number of states, particularly New York and New Jersey, may still experience significant increases in REO inventory.
  • If the average number of days stabilizes at mid-2012 levels through 2013, the REO inventories in most Western states would decline, while states in the Northeast would have sizeable increases.
  • If the average number of days declines, REO inventories would rise sharply in most states—tripling in New York and more than doubling in New Jersey. Only California and Arizona would have significant reductions in REO inventory.

State REO Data:
The second map compares and ranks the inventory of REO properties by state. It also displays each state’s share of the national REO market. California, Florida and Michigan account for approximately 30 percent of the total REO property market.

Top three states by REO inventory, and share of national total:

  • California 49,299 (11.1 percent)
  • Florida 44,677 (10.1 percent)
  • Michigan 38,275 (8.6 percent)

Regional Distressed Sales:
The third map provides a county-level look at proportion of distressed sales in New York, New Jersey and Connecticut.  The share of distressed sales from total sales in July 2012 was lower in all three states compared to the national average.  Connecticut (22.1 percent), New Jersey (16.3 percent) and New York (8.6 percent) are all below the 33.8 percent U.S. average.  These figures, however, are all significantly higher than 2004, when all three states had proportions below 3 percent and the national average was 6.3 percent.

An Assessment of the Distressed Residential Real Estate Situation »

Media contacts:
Matthew Ward
212-720-6885
matthew.ward@ny.frb.org

Eric Pajonk
212-720-1735
eric.pajonk@ny.frb.org

 

1 Data provided by CoreLogic.