SILVAR  :  Newsroom  : Real Estate Articles

Real Estate Articles

REALTOR®: Equity home sales near 90 percent of the California housing market in May

Wednesday, June 25, 2014

The California housing market has definitely bounced back from the downturn as higher home values continue to fuel more equity home sales. Equity home sales made up more than 80 percent of all home sales for the past 11 straight months. According to the California Association of REALTORS®, the non-distressed home sales rose further in May to 89.2 percent, up from 88.4 percent in April.

Equity sales have continued to rise steadily since the beginning of this year. May marks the 11th straight month that equity sales have been more than 80 percent of total sales. Equity sales made up 78 percent of sales in May 2013.

The combined share of distressed property sales declined to 10.8 percent in May from 11.6 percent in April. Distressed sales are down by more than half from a year ago, when the share was 22 percent.

Twenty-six of the 41 reported counties showed a month-to-month decrease in the share of distressed sales, with 11 of the counties recording single digits. Alameda, Marin, San Diego, San Luis Obispo, San Mateo, and Santa Clara counties — all of which registered a share of five percent or less. Santa Clara County registered a share of just 3 percent, down from 4 percent in the previous month and down from 7 percent in May 2013. In San Mateo County distressed home sales inched up to 3 percent in May, from the prior month's share of 2 percent in April, but down from 4 percent a year ago.

The share of short sales dropped to late 2007 levels, when they are at 5.6 percent, down from 5.9 percent in April. May's figure was nearly a third of the 14 percent recorded in May 2013. The share of REO sales fell in May to 4.7 percent, down from 5.3 percent in April and 7.6 percent in May 2013.

The combined share of distressed homes has declined nationwide. According to the National Association of REALTORS® (NAR), distressed sales accounted for 11 percent of May's total home sales, a decline of 18 percent from the their share in May 2013. Eight percent of May sales were foreclosures and three percent were short sales. According to NAR, foreclosures sold for an average discount of 18 percent below market value in May, while short sales were discounted 11 percent.

"With fewer distressed homes for sale and prices reaching unaffordable levels in some places, we are seeing buyers opting to stand in the sidelines. There are virtually no bargain properties for buyers and investors in places like Silicon Valley. A continued rise in inventory would stem price growth and could bring market forces back in sync," said David Tonna, president of the Silicon Valley Association of REALTORS®.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

» Back to Real Estate Articles

Site Navigation