The share of equity sales in California in September reached its highest level in four years, largely due to the lack of inventory. According to the California Association of REALTORS®, the share of equity sales as a portion of all home sales in September increased to 63 percent, up from 62.2 percent in August. Equity sales accounted for about half (50.8 percent) of all sales in September 2011.
The share of all distressed property sales was down 37 percent in September. These home sales made up 37.8 percent of all home sales in August and 49.2 percent in September 2011. The share of short sales rose 24.3 percent in September from 23 percent in August and 21.5 percent in September last year. REO sales made up 12.3 percent of all sales, down from 14.4 percent in August and 27.5 percent in September 2011.
"Lenders are realizing that a short sale is a better option than a foreclosure, which requires the lender to either hold or resell the property. Borrowers, with the advice of their legal and tax counsel, can decide whether a short sale or foreclosure process will be a better option. Forgiveness of debt laws are currently set to sunset at the end of 2012, so it is very important to get tax advice before agreeing to a short sale," says Suzanne Yost, president of the Silicon Valley Association of REALTORS®.
Distressed property sales in Santa Clara County made up 22 percent of total sales in September. They accounted for 21 percent of total sales in August and 35 percent in September 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.
For further information, please email or call the SILVAR office at (408) 200-0100.