Equity sales hit five-year high; pending home sales post monthly gain as the housing market enters the spring buying season
LOS ANGELES, CA – April 22, 2013 – (RealEstateRama) — The share of equity sales rose to their highest level in five years, while March California pending home sales climbed from the previous month, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
Pending home sales data:
C.A.R.’s Pending Home Sales Index (PHSI)* rose 14.8 percent from a revised 110.1 in February to 126.3 in March, based on signed contracts. Pending sales were down 7.5 percent from the 136.5 index recorded in March 2012. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
“Recent gains in home prices are increasing the market value of many underwater homes,” said C.A.R. President Don Faught. “As a result, many homes that were previously listed as short sales are now selling as equity sales, as is indicated by the five-percent drop in the share of short sales compared with last year.”
Distressed housing market data:
• The share of equity sales – or non-distressed property sales – compared with total sales rose to their highest level since February 2008, recording a 72.1 percent share in March. Equity sales made up 66.8 percent of all sales in February and about half (51.2 percent) of all sales in March 2012.
• The combined share of all distressed property sales continued to decline in March, dropping from 33.2 percent in February to 27.9 percent in March 2013. Distressed properties comprised 48.8 percent of all sales in March 2012.
• Of the distressed properties, the share of short sales was 17.3 percent in March, down from 19.8 percent in February and down from 22.6 percent a year ago. The March figure was the lowest since November 2009.
• The share of REO sales also declined to their lowest level since late 2007, falling from 12.9 percent in February to 10.2 percent in March and down from 25.9 percent in March 2012.
• Housing inventory fell in all three property types in March, with the Unsold Inventory Index for short sales falling from a revised 3.2 months in February to 2.7 months in March and REOs slipping from 2 months in February to 1.8 months in March. The index for equity sales declined from 3.8 months in February to 3 months in March.
Charts:
• Pending sales compared with closed sales.
• Historical trend in the share of equity sales compared with distressed sales.
• Closed housing sales in March by sales type (equity, distressed).
• Housing supply of REOs, short sales, and equity sales in March.
• 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
(Single-family)
| Type of Sale | Mar-13 | Feb-13 | Mar-12 |
| Equity Sales | 72.1% | 66.8% | 51.2% |
| Total Distressed Sales | 27.9% | 33.2% | 48.8% |
| REOs | 10.2% | 12.9% | 25.9% |
| Short Sales | 17.3% | 19.8% | 22.6% |
| Other Distressed Sales (Not Specified) | 0.4% | 0.5% | 0.3% |
| All Sales | 100.0% | 100.0% | 100.0% |
Single-family Distressed Home Sales by Select Counties
(Percent of total sales)
| County | Mar-13 | Feb-13 | Mar-12 |
| Alameda | 19% | 22% | NA |
| Amador | 29% | 46% | 64% |
| Butte | 24% | 40% | 40% |
| Contra Costa | 16% | 29% | NA |
| El Dorado | 29% | 39% | 59% |
| Fresno | 41% | 44% | 60% |
| Humboldt | 34% | 26% | 34% |
| Kern | 33% | 37% | 53% |
| Kings | 54% | 41% | NA |
| Lake | 49% | 45% | 63% |
| Los Angeles | 27% | 32% | 48% |
| Madera | 46% | 53% | 68% |
| Marin | 19% | 19% | 29% |
| Mendocino | 27% | 27% | 50% |
| Merced | 39% | 41% | 56% |
| Monterey | 39% | 45% | 49% |
| Napa | 22% | 34% | 53% |
| Orange | 17% | 20% | 38% |
| Placer | 35% | 33% | 51% |
| Riverside | 37% | 39% | 59% |
| Sacramento | 37% | 43% | 59% |
| San Benito | 49% | 44% | 61% |
| San Bernardino | 37% | 43% | 63% |
| San Diego | 9% | 15% | 26% |
| San Joaquin | 42% | 51% | 60% |
| San Luis Obispo | 29% | 21% | 39% |
| San Mateo | 13% | 19% | 27% |
| Santa Clara | 14% | 17% | 32% |
| Santa Cruz | 27% | 34% | 42% |
| Siskiyou | 43% | 60% | 78% |
| Solano | 49% | 52% | 69% |
| Sonoma | 27% | 34% | 53% |
| Stanislaus | 39% | 48% | 70% |
| Tehama | NA | NA | 59% |
| Tulare | 38% | 49% | 62% |
| Yolo | 42% | 38% | 57% |
| California | 28% | 33% | 49% |
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.
