The California Association of REALTORS® reported this week that the share of equity home sales in the state rose in September for the 10th straight month. Equity home sales now make up more than eight of 10 home sales in the state, the highest level since November 2007.
Equity home sales made up 85.8 percent of all home sales, up from 84.7 percent in August. The non-distressed sales made up 62.7 percent of all home sales in September 2012.
Conversely, the combined share of all distressed property sales continued to decline in September, dropping to 14.2 percent in September, down from 15.3 percent in August and down sharply from 37.3 percent in September 2012. San Diego, San Mateo, and Santa Clara tied for the lowest share of distressed home sales at 4 percent.
"These figures show the California housing market is well into recovery," said Carolyn Miller, president of the Silicon Valley Association of REALTORS®. "There are fewer distressed properties in the state, especially in Silicon Valley, where housing is a premium."
Single-family distressed home sales as a percent of total sales remained at 4 percent in Santa Clara County in the months of August and September, a far cry from a year ago, when single-family distressed home sales made up 22 percent of the total home sales.
C.A.R. reported California pending home sales dipped in September, with the Pending Home Sales Index in September at 106.4, down 1.8 percent from the August index. The drop is attributed to seasonal factors, though the monthly slip was slightly smaller than the average August-to-September decrease over the past five years. Pending sales were down 8.1 percent from the 115.7 index recorded in September 2012.
C.A.R. Vice President and Chief Economist Leslie Appleton-Young said the debate leading up to the expected tapering of the Fed's stimulus program and the government shutdown might have put some of the housing demand on hold. "While interest rates have decreased since the Fed's decision last month to postpone the pullback, the government shutdown and debt ceiling discussions are likely to have an adverse effect on October home sales," predicted Appleton-Young.
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.
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