California REO, Short Sale Transactions Climb in October

For the sixth consecutive month, the state of California experienced good news in terms of pending home sales.

Pending home sales increased 3.1% in October from September, according to the California Association of Realtor's. This also represents a 10.7% spike compared to October 2010. 

LeFrancis Arnold, president of the California Association of Realtor's, said the monthly and year-over-year increases are an “encouraging” sign for the future of the state's housing market.

“California home sales continue to perform modestly well and should be on pace to match or better last year's level,” Arnold added.

The total share of all distressed properties sold statewide was approximately 46% in October, up from 44.5% in September and 44.8% in October 2010.

Of the distressed properties sold, 20.7% were short sales and 24.9% were REO homes. 

Madera County (89%) sold the most single-family distressed properties in October, followed by Lake County (78%) and then San Benito and Solano counties at 72%, respectively.

Equity sales made up slightly more than 53% of home sales in October, down from 55.5% in September and 55.2% during the same time period last year.

While equity sales have edged down form their peak of 57.1% in July 2011, the CAR said they are up from the beginning of the year when less than half (46.5%) of sales were non-distressed.