The share of California homes sold in nondistressed, traditional sales transactions is at its highest level in seven years, according to data from the California Association of Realtors.
In April, nondistressed property sales accounted for 88.4% of all California home transactions, up 8 basis points from the previous month. Nondistressed sales have been rising steadily since the beginning of 2014 due to home price appreciation.
Meanwhile, a drop in short sales has resulted in fewer distressed properties being bought during April. Overall, the share of distressed property sales were down from 12.4% in March to 11.6% in April.
Short sales consisted of 5.9% of all distressed home transactions, which is a figure last seen in April 2008. A year ago, short sales made up 14.7% of all California distressed property sales.
The share of April REO sales dipped 1 basis point month-over-month to 5.3%. REO sales are now nearly half of what they were a year earlier, when bank-owned homes accounted for 9.4% of all distressed transactions.
Out of the 41 reported counties, CAR said 26 showed a month-over-month decrease in the share of distressed sales, with 13 recording single-digit drops.
CAR also reported that its pending home sales index, which is based on signed contracts, only fell 0.5% month-over-month and is currently at 113.8. Pending sales were down 6% from the revised 121.1 index recorded in April 2013.