California Pending Home Sales Drop While Short Sale Percentage Climbs
As we creep into the fall months, California and more specially Bay Area pending home sales slid while equity and short sales continue to mark gains according to recently released data from the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R.)
California pending home sales dropped in September, while the share of equity sales reached its highest level in four years. The decline from August to September should come as no surprise as the post Labor day market typically slows down after the busy summer season.
Bay Area Distressed Housing Market Data
On the distressed housing market front we see some interesting trends:
• The share of equity sales – non-distressed property sales – compared with total sales grew to its highest level in four years. The share of equity sales in September increased to 63 percent, up from 62.2 percent in August. In September 2011, equity sales made up 50.8 percent of all sales.
• REO sales statewide shrank further in September, while the share of short sales grew. The combined parentage of total distressed property sales dropped to 37 percent in September, down from 37.8 percent in August and down from 49.2 percent in September 2011.
• Of the distressed properties, the share of short sales grew to 24.3 percent in September from 23 percent in August and from 21.5 percent a year ago.
• In September, the share of REO sales contracted to less than half what it was a year ago to 12.3 percent, down from 14.4 percent in August and 27.5 percent in September 2011.
• The available supply of REOs eased up in September but remains tight. The Unsold Inventory Index for REOs stood at 2.2 months in September. In comparison, the Unsold Inventory Index for short sales registered 3.9 months and equity sales hit the 3.8 months mark.
• For Single-family Distressed Home Sales (Percent of total sales) here in the Bay Area, the numbers show that San Mateo county rose to 20 percent in September 2012, up from just 15 percent in August 2012 but down from the 26 percent mark in September 2011.
Santa Clara county showed a slight up tick to 22 percent in September 2012 up from 21 percent in August 2012 but down from 35 percent in September 2011.
For Alameda county the September 2012 numbers reflected at 28 percent share which displayed a healthy rise from the 23 percent level in August 2012. The report did not show the September 2011 numbers for Alameda.
California Pending Home Sales Drop In September