The weather isn’t the only thing heating up in California. Our housing market is hot, hot, hot! The share of equity home sales in California continued to grow in May, making up nearly four of every five home sales. Meanwhile, sales of bank owned homes fell into the single-digits for the second straight month and registered levels not seen since October 2007, the California Association of Realtors reported Tuesday.
Distressed housing market data
- The share of equity sales – or non-distressed property sales – increased further in May and now makes up more than three-fourths of total sales, the highest share since January 2008. The share of equity sales in May increased to 78.2 percent, up from 75.6 percent in April. Equity sales made up more than half (55.8 percent) of all sales in May 2012.
- The combined share of all distressed property sales continued to decline in May, dropping to 21.8 percent. Last May (2012) this figure was 44.2 percent. The share of all distressed sales in 31 of the 36 reported counties also declined significantly from the previous year.
- Of the distressed properties, the share of short sales was 14 percent in May, down from 14.8 percent in April and down from 21 percent a year ago. The May 2013 figure was the lowest since July 2009. The continuing decline in short sales indicates more previously underwater homes are moving into positive equity.
- The share of REO sales fell to single-digits for the second straight month, dropping from 9.2 percent in April to 7.3 percent in May and from 22.8 percent in May 2012.
- The available supply of homes remained tight but was relatively unchanged from April. May’s Unsold Inventory Index for REOs was unchanged at a 1.7-month supply. The supply of short sales dipped from 2.7 months in April to 2.3 months in May. The May Unsold Inventory Index for equity sales was 2.8 months, down from 2.9 months in April.
Pending home sales data
CAR’s Pending Home Sales Index (PHSI) edged up 0.3 percent in May to 122.1, up from 121.7 in April, based on signed contracts. Pending sales were down 3.1 percent from the 125.9 index recorded in May 2012. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
As you can see the summer housing market continues to heat up. If you’ve ever thought of buying or selling a home it might be time to consult a Realtor. Take advantage of the hot market and dive in to the cool home you’ve been dreaming of.
Sheri Aguilar is the president of the Lodi Association of Realtors and can be reached at Sheri@YourLocalAOR.com