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REALTOR®: Equity sales reach a five-year high, a good sign for the housing market

Wednesday, April 24, 2013

With the number of distressed properties for sale shrinking, and demand for homes in Silicon Valley still strong, more non-distressed properties are selling and this is a good sign for California's housing market, according to REALTOR® officials. The California Association of REALTORS® reported this week that equity sales accounted for more than two-thirds of total home sales in March, rising to their highest level in five years.

Equity sales made up 72.1 percent of total shares last month, the highest recorded since February 2008. Equity sales accounted for 66.8 percent of all sales in February and 51.2 percent of all sales in March 2012.

Distressed properties comprised 27.9 percent of all sales in March, down from 33.2 percent in February and down from 48.8 percent of all sales in March 2012. Short sales made up 17.3 percent, down from 19.8 percent in February and from 22.6 percent a year ago. The March share was the lowest for short sales since November 2009.

REO sales fell to their lowest level since late 2007, according to C.A.R. REO sales made up 10.2 percent of all home sales in March, down from 12.9 percent in February and down from 25.9 percent in March of last year.

In Santa Clara County, single-family distressed home sales accounted for only 14 percent of total March sales, down from 17 percent in February and 32 percent in March 2012. Distressed home sales in neighboring San Mateo County saw a similar drop, accounting for only 13 percent of total March sales, down from 19 percent of total February home sales and down from 27 percent of total sales in March 2012.

With the inventory of homes down, especially distressed properties, the market is seeing a rise in home prices. This is good news for many homeowners, according to Carolyn Miller, president of the Silicon Valley Association of REALTORS®. "Families who once owed more than what their home was worth are now seeing more equity in their homes," said Miller.

Miller said it is a seller's market right now, but there are still hesitant sellers and some are deciding to stay put. "The housing market in the region is 'white hot' right now, largely due to the lack of current inventory. There are homeowners, potential sellers, who haven't decided where to go – whether to move up, downsize, retire and leave the area or stay," says Miller. "Many retirees have decided 'there's no place like home' and they aren't selling their homes, not like in the past."


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.

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