The California Association of REALTORS® (C.A.R.) reports recent gains in home prices have pushed the share of equity home sales to their highest level since late 2007, thus helping more underwater homes move into positive territory. In fact, Silicon Valley's share of distressed home sales is the lowest in the state.
While 26 of 41 reported counties showed a month-to-month decrease in the share of distressed sales, 13 counties are down to single-digits. The counties of Alameda, Marin, San Benito, San Diego, San Luis Obispo, San Mateo, and Santa Clara recorded a share of five percent or less. In San Mateo County, the share of distressed home sales dropped to 2 percent in April, down from 4 percent in March and 11 percent in April last year. Santa Clara County's share of distressed home sales was 4 percent in April, down from 5 percent in the previous month and 10 percent in April 2013.
"The significant drop in the share of distressed home sales is a healthy sign for the housing market and a relief to many homeowners," said David Tonna, president of the Silicon Valley Association of REALTORS®. "A year ago, there were homeowners who wanted to sell, but could not. As more sellers gain confidence in the market, the increase in inventory will foster more sustainable market conditions."
According C.A.R., the statewide share of equity sales rose to 88.4 percent in April, up from 87.6 percent in March. April is the 10th straight month that equity sales have been more than 80 percent of total sales. The non-distressed sales accounted for 75.4 percent of total home sales in the same month last year.
Conversely, the combined share of all distressed property sales in California continued to decline in April. The share of distressed property sales was down from 12.4 percent in March to 11.6 percent in April. Distressed sales accounted for 24.6 percent of the total home sales a year ago.
The share of distressed home sales is shrinking nationwide, according to the National Association of REALTORS® (NAR). Distressed home sales made up 15 percent of April sales nationwide, down from 18 percent in April 2013. NAR projects distressed homes to drop to a single-digit market share by the fourth quarter of this year.
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.