California distressed housing market improves in April as sales increase
Bargain hunters, investors join in spring buying season
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.