CAR's Pending Home Sales Index in May down 3.1% year-over-year to 122.1, down 3.7% from previous month; share of distressed property sales fell to 21.8%, down from 44.2% a year earlier and 24.4% in April

LOS ANGELES , June 24, 2013 (press release) – 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 REOs fell into the single-digits for the second straight month and registered levels not seen since October 2007, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

Distressed housing market data:

• The combined share of all distressed property sales continued to decline in May, dropping to 21.8 percent in May, down from 24.4 percent in April and down from 44.2 percent in May 2012. The share of all distressed sales in 31 of the 36 reported counties also declined significantly from the previous year, with Contra Costa, Marin, San Diego, San Mateo, and Santa Clara recording in the single-digits in May.

• 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.

• 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:


C.A.R.’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.


Charts:


Pending sales compared with closed sales.
• Historical trend in the share of equity sales compared with distressed sales.
Closed housing sales in May by sales type (equity, distressed).
Housing supply of REOs, short sales, and equity sales in May.
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
(Single-family)

 

Type of Sale May
2013

April
2013

May
2012
Equity Sales 78.2% 75.6% 55.8%
Total Distressed Sales 21.8% 24.4% 44.2%
     REOs 7.3% 9.2% 22.8%
     Short Sales 14.0% 14.8% 21.0%
     Other Distressed Sales (Not Specified)  0.5% 0.5% 0.3%
All Sales  100.0% 100.0% 100.0%



Single-family Distressed Home Sales by Select Counties
(Percent of total sales)
 

County May
2013
April
2013
May
2012
Alameda 11% 9% NA
Amador NA 40% 50%
Butte 20% 27% 37%
Contra Costa 9% 11% NA
El Dorado 21% 22% 47%
Fresno 38% 38% 57%
Humboldt 16% 20% 34%
Kern 25% 31% 48%
Kings 38% 40% NA
Lake 36% 49% 70%
Los Angeles 23% 24% 41%
Madera 52% 47% 79%
Marin 8% 10% 21%
Mendocino 31% 24% 44%
Merced 32% 44% 54%
Monterey 29% 37% 52%
Napa 20% 23% 44%
Orange 14% 13% 33%
Placer 21% 23% 47%
Riverside 29% 32% 54%
Sacramento 29% 32% 58%
San Benito 30% 22% 59%
San Bernardino 32% 35% 59%
San Diego 7% 10% 23%
San Joaquin 36% 43% 62%
San Luis Obispo 15% 17% 35%
San Mateo 4% 11% 21%
Santa Clara 7% 10% 28%
Santa Cruz 10% 18% 33%
Siskiyou 30% 34% 54%
Solano 36% 43% 70%
Sonoma 19% 22% 45%
Stanislaus 40% 37% 65%
Tehama NA NA 65%
Tulare 37% 34% 56%
Yolo 25% 34% 45%
California 22% 24% 44%

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 155,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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