Talking Points …
- The share of equity sales – or non-distressed property sales – has risen on a month-to-month basis for 17 of the last 18 months and now makes up more than four in five sales, the highest share since December 2007, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). In addition, distressed sales plunged by half compared to a year ago.
- C.A.R. reported that the available supply of homes was essentially flat from June but remained tight. The July Unsold Inventory Index for equity sales edged down from 3.1 months in June to 3 months in July. The supply of REOs inched up from 1.8 months in June to 2.1 months in July, and the supply of short sales ticked upward from 2.4 months in June to 2.5 months in July.
- Of the distressed properties, the share of short sales fell to the lowest point since April 2009 at 11.6 percent. July’s figure was down from 12.9 percent in June and was about half of what it was a year ago, when short sales made up 22.7 percent of all sales. The continuing decline in short sales indicates more previously underwater homes are moving into positive equity as home prices remain on an upward trend.