The California Association of REALTORS® (C.A.R.) reports the share of equity property sales sold in California continued to rise in the month of March. This trend may be a sign that California's housing market is truly rebounding, according to REALTOR® officials.
Data from C.A.R. shows equity or non-distressed property sales made up 55.4 percent of total sales in March, up from 51.1 percent in February. Equity sales made up 50.2 percent of all sales in March 2011. The total share of all distressed property types sold statewide declined in March to 44.6 percent, down from February's 48.9 percent and from 49.8 percent in March 2011.
The total share of distressed property sales in Santa Clara County also declined substantially in March. Single-family distressed home sales comprised 33 percent in March, down from making up 40 percent of all home sales in February and 38 percent of all home sales in March 2011.
Of distressed properties sold statewide last month, 21.1 percent were short sales, down from February's share of 23 percent but up from last March's share of 20.1 percent. The share of REO sales also declined in March to 23.1 percent, down from February's 25.2 percent and down from the 29.4 percent recorded in March 2011.
Another sign that the state's housing market appears to be stabilizing is the significant drop in the number of homes entering the formal foreclosure process. DataQuick reports a total of 56,258 Notices of Default (NODs) were recorded during the first quarter of this year, down 8.5 percent from 61,517 for the prior three months, and down 17.6 percent from 68,239 in first-quarter 2011. NODs peaked at 135,431 in first-quarter 2009.
"Notices of Default are the first step of the formal foreclosure process. The fact that fewer are being recorded is significant because this shows that more homeowners are able to keep up with their payments and not in immediate danger of losing their home," said Suzanne Yost, president of the Silicon Valley Association of REALTORS®. "Some analysts predict we may still see another wave of defaults and foreclosures, but it may not be as severe as in the last couple of years."
Santa Clara County experienced a 33.6 percent decline in NODs recorded in the first quarter of this year from the same time last year, with a total of 1,496 NODs recorded in the first quarter compared with 2,253 in first-quarter 2011. Santa Clara County had the largest drop in NODs in the nine-county Bay Area.
Trustees Deeds recorded, or the actual loss of a home to the formal foreclosure process, totaled 30,261 in the state during the first quarter, down 3.2 percent from 31,260 filed the prior quarter, and down 29.7 percent from 43,052 during first-quarter 2011. The all-time peak was 79,511 in third-quarter 2008. In Santa Clara County there were 681 Trustees Deeds recorded in the first quarter, down 28.5 percent from 952 in first-quarter 2011.
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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