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Monday, January 24 2011 - By Landon Myers
Almost 50 percent of homes sold in the U.S. in December were distressed, according to RealtyTrac.
People planning on moving received a stark reminder today about how flooded the housing market is with foreclosed homes.

According to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, over 47 percent of the homes sold in the United States last month were foreclosed.

The report indicates that the number of foreclosed or distressed homes ticked up slightly from November, going to 47.2 percent from 44.5 percent. It fell just short of the year's high in distressed home sales, 47.5 percent, which was reached in September.

The spike in distressed home sales was even more pronounced in specific regions of the country. For instance in California - a state that had nearly 550,000 foreclosures in 2010 alone - 66 percent of all December home sales involved a distressed home, according to RealtyTrac.

"The combination of increased property supply and growing homebuyer demand caused a blow-out month," said Thomas Popik, research director for Campbell Surveys.

Nevada had the highest foreclosure rate last year, with one in every 11 housing units receiving at least one foreclosure filing, according to RealtyTrac. It's the fourth straight year Nevada has had the highest rate. 

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