Nine in 10 homes sold in positive equity territory, while pending home sales decrease in June
LOS ANGELES (July 23,2014) – Equity home sales posted their highest level since the housing crisis began, reaching more than 90 percent of all home sales. Meanwhile, seasonal factors, combined with shrinking affordability cooled pending home sales in June, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.
Distressed housing market data:
• The share of equity sales – or non-distressed property sales – continued in an upward trend, rising in June to 90.3 percent, up from 89.2 percent in May. Equity sales have been rising steadily again since the beginning of this year. June marks a full year that equity sales have been more than 80 percent of total sales and the first time they have risen above 90 percent. Equity sales made up 79.7 percent of sales in June 2013.
• The combined share of all distressed property sales declined further in June, dropping from 10.8 percent in May to 9.7 percent in June. Distressed sales continued to be down by more than 50 percent from a year ago, when the share was 20.3 percent.
• Twenty-three of the 41 reported counties showed a month-to-month decrease in the share of distressed sales, with 17 of the counties recording in the single-digits, including Alameda, Butte, Contra Costa, Marin, San Diego, San Luis Obispo, San Mateo, and Santa Clara counties — all of which registered a share of five percent or less.
• Of the distressed properties, the share of short sales fell to its lowest level since February 2008, falling to 5 percent in June, down from 5.6 percent in May. June’s figure was more than half the 12.9 percent recorded in June 2013.
• The share of REO sales fell in June to 4.4 percent, down from 4.7 percent in May and from 6.8 percent in June 2013.
• The supply of inventory inched up across all sales types in June. The Unsold Inventory Index for equity sales edged up from 3.7 months in May to 3.8 months in June, and from 2.3 months in May to 2.4 months in June for REO sales. The supply of short sales rose from 4.3 months in May to 4.8 months in June.
Pending home sales data:
• California pending home sales fell in June, with the Pending Home Sales Index (PHSI)* dropping 2.8 percent from 110.1 in May to 107 in June, based on signed contracts.
• Pending sales were down 5.9 percent from the revised 113.8 index recorded in June 2013. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
Charts (click link to open):
• Pending sales compared with closed sales.
• Historical trend in the share of equity sales compared with distressed sales.
• Closed housing sales in June by sales type (equity, distressed).
• Housing supply of REOs, short sales, and equity sales in June.
• 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||Jun-14||May-14||Jun-13|
|Total Distressed Sales||9.7%||10.8%||20.3%|
|Other Distressed Sales (Not Specified)||0.3%||0.5%||0.5%|
Single-family Distressed Home Sales by Select Counties
(Percent of total sales)
|San Luis Obispo||5%||5%||13%|
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 165,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles