LOS ANGELES, CA – May 22, 2013 – (RealEstateRama) — Distressed home sales continued to decline in April, as previously underwater homes rose in value, and the share of REO sales registered in the single-digits for the first time in more than five years, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
Distressed housing market data:
• The combined share of all distressed property sales registered its lowest level since February 2008, dropping to 24.4 percent in April, down from 27.9 percent in March and down from 45.8 percent in April 2012. The share of all distressed sales in most counties also declined significantly from the previous year, with Alameda, Contra Costa, Marin, Orange, San Diego, San Mateo, and Santa Clara registering in the single- or low double-digits in April.
• The share of equity sales – or non-distressed property sales – now make up more than three-fourths of total sales, the highest share since February 2008. The share of equity sales in April increased to 75.6 percent, up from 72.1 percent in March. Equity sales made up more than half (54.2 percent) of all sales in April 2012.
• Of the distressed properties, the share of short sales was 14.8 percent in April, down from 17.3 percent in March and down from 21.1 percent a year ago. The continued decrease of short sales is an indication of previously underwater homes moving into positive equity.
• The share of REO sales fell to single-digits for the first time since late 2007, dropping from 10.2 percent in March to 9.2 percent in April and from 24.3 percent in April 2012.
• The available supply of homes was relatively unchanged from March but remained tight. In April, the Unsold Inventory Index for REOs dipped from 1.8 months in March to 1.7 months in April. At 2.7 months, the supply of short sales remained unchanged in April. The April Unsold Inventory Index for equity sales was 2.9 months, down from 3 months in March.
Pending home sales data:
C.A.R.’s Pending Home Sales Index (PHSI)* decreased 3.7 percent from a revised 126.5 in March to 121.7 in April, based on signed contracts. Pending sales were down 3.9 percent from the 126.7 index recorded in April 2012. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
• Pending sales compared with closed sales.
• Historical trend in the share of equity sales compared with distressed sales.
• Closed housing sales in April by sales type (equity, distressed).
• Housing supply of REOs, short sales, and equity sales in April.
• A historical trend of REO, short sale, and equity sales housing supply.
• Year to year change in sales by property type.
Share of Distressed Sales to Total Sales
|Type of Sale|| April
|March 2013|| April
|Total Distressed Sales||24.4%||27.9%||45.8%|
|Other Distressed Sales (Not Specified)||0.5%||0.4%||0.4%|
Single-family Distressed Home Sales by Select Counties
(Percent of total sales)
|March 2013|| April
|San Luis Obispo||17%||29%||44%|
NA = not available
**Note: C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state. Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market. A sale is listed as pending after a seller has accepted a sales contract on a property. The majority of pending home sales usually becomes closed sales transactions one to two months later. The year 2008 was used as the benchmark for the Pending Homes Sales Index. An index of 100 is equal to the average level of contract activity during 2008.
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 155,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.