California's housing market is recovering, according to REALTOR® officials. Home values are rising and equity sales in February rose to their highest level in five years. The California Association of REALTORS® reports equity home sales last month made up more than two-thirds of all home sales for the first time since April 2008.
The share of equity sales – non distressed sales - in February was 67.1 percent, up from 64.4 percent in January, and up from 46.7 percent of all sales in February 2012. The February level was the highest since the share of equity sales was 67.3 percent in April 2008.
The combined share of all distressed property sales fell to 32.9 percent in February, from 35.6 percent in January and 53.3 percent in February 2012. The share of short sales was 19.9 percent in February, down from 21.5 percent in January and down from 24.8 percent a year ago. The share of REO sales declined from 13.7 percent in January to 12.6 percent in February. The REO sales share was 28 percent in February 2012.
In Santa Clara County, single-family distressed home sales made up 17 percent of February's total home sales, down from 24 percent in January and 40 percent in February 2012. Despite the shortage of inventory that appears to be negatively impacting sales, the rise in the share of equity home sales is good for homeownership, according to the Silicon Valley Association of REALTORS® (SILVAR).
"That the number of distressed sales has declined shows the market is gaining strength. Home values are rising and this is good news for families worried about their home equity," said SILVAR President Carolyn Miller.
Information from MLSListings Inc. indicates Santa Clara County's February median sales price of $712,250 was up 8 percent from $660,000 in January and 32 percent above the median of $540,000 in February 2012. Pending home sales rose in February from the previous month, but are still lower than year-ago levels. In Santa Clara County there were 1,327 single-family home sales under contract in February, up from 1,222 in January, but down from 2,337 home sales under contract recorded in February 2012.
"Homeowners who may have been underwater on their home loans are now seeing some positive equity on their mortgages," explained Miller. "It is also good for those who were not able to refinance to reduce their higher interest rates because of low comps in a given neighborhood. These diligent homeowners had been faithfully keeping up on their loan obligations and paying higher interest because the area values weren't there."
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 email or call the SILVAR office at (408) 200-0100.