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Wednesday, July 10, 2013

Equity home sales post higher in May

Equity home sales post higher in May

The share of equity home sales in California continued to grow in May, making up nearly four of every five home sales, C.A.R. reported this week. Meanwhile, sales of REOs fell into the single-digits for the second straight month and registered levels not seen since October 2007

The combined share of all distressed property sales continued to decline in May, dropping to 21.8 percent in May, down from 24.4 percent in April and down from 44.2 percent in May 2012.

The share of equity sales – or non-distressed property sales – increased further in May and now makes up more than three-fourths of total sales, the highest share since January 2008. The share of equity sales in May increased to 78.2 percent, up from 75.6 percent in April. Equity sales made up more than half (55.8 percent) of all sales in May 2012.

Of the distressed properties, the share of short sales was 14 percent in May, down from 14.8 percent in April and down from 21 percent a year ago. The May 2013 figure was the lowest since July 2009. The continuing decline in short sales indicates more previously underwater homes are moving into positive equity.

The available supply of homes remained tight but was relatively unchanged from April. May’s Unsold Inventory Index for REOs was unchanged at a 1.7-month supply. The supply of short sales dipped from 2.7 months in April to 2.3 months in May. The May Unsold Inventory Index for equity sales was 2.8 months, down from 2.9 months in April.

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