Pleasanton Weekly

Real Estate - June 17, 2011

California distressed housing market improves in April as sales increase

Bargain hunters, investors join in spring buying season

by Jeb Bing

The share of distressed homes sold in California dropped for the second consecutive month in April, the California Association of Realtors reported last week.

"The share of sales of non-distressed properties increased during April, as bargain hunters and investors were joined by home buyers who are timing their buying decisions to coincide with the start of the spring home buying season," said CAR President Beth L. Peerce.

She said the total share of all distressed property types sold statewide declined in April to 48%, down from 51% in March and down from 49% in April 2010.

Non-distressed sales made up the remaining share at 52% in April, up from 49% in March and up from 51% in April 2010.

Of the distressed properties sold statewide, the total share of REO (real estate-owned) sales was 28% in April, down from 31% in March, and down from 30% in April 2010.

The statewide share of short sales also dropped in April to 19%, down from 20% in March but unchanged from 19% in April 2010.

April pending home sales in California declined from March, according to CAR's Pending Home Sales Index (PHSI). The index was 114.3 in April, down 11% from March's revised index of 128.4, based on contracts signed in April.

The index was down 19.2% from April 2010, when the presence of housing tax credits played a strong role in home sales. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

Comments

Posted by Homeowner, a resident of Another Pleasanton neighborhood
on Jun 17, 2011 at 7:13 am

Gee, from the title sounds like our housing problems are going away and moving in the right direction.

Let's see, the % of homes sold in April that were distressed were only 48%, down three entire percentage points from last month. What momentum. And down from 49% last year. Now that is a positive trend!

Short sales dropped a FULL entire percentage point. Good to see these are almost all gone.

You should ignore the overall sales numbers in the last two paragraphs. The fact that overall sales are down from the prior month and compared to last year is irrelevant.


Don't miss out on the discussion!
Sign up to be notified of new comments on this topic.

Email:


Post a comment

Posting an item on Town Square is simple and requires no registration. Just complete this form and hit "submit" and your topic will appear online. Please be respectful and truthful in your postings so Town Square will continue to be a thoughtful gathering place for sharing community information and opinion. All postings are subject to our TERMS OF USE, and may be deleted if deemed inappropriate by our staff.

We prefer that you use your real name, but you may use any "member" name you wish.

Name: *

Select your neighborhood or school community: *

Comment: *

Verification code: *
Enter the verification code exactly as shown, using capital and lowercase letters, in the multi-colored box.

*Required Fields