The future is looking better in California as pending home sales increased in February for the second straight month, according to the state association of Realtors.
After two consecutive months of declines, equity sales made up 51.1% of home sales, an increase from 49.9% in January and 44.8% a year ago.
Meanwhile, the total share of all distressed property types sold statewide decreased in February to 48.9%, down from 50.1% the prior month and from 55.2% last year.
“A lack of inventory in the bank-owned and short sale market was a contributing factor to the decline in share of distressed sales in February,” said LeFrancis Arnold, president of CAR. “In fact, REO inventory declined 24% in February from the previous year, while short sale inventory dropped 17% during the same period.”
Of the distressed properties sold statewide in January, 23% were short sales. This is down from 23.8% experienced in the previous month, but up from last February's share of 22.9%.
The share of REO sales also edged down in February to 25.2%, down from January's 25.9% and down from the 31.9% recorded in February 2011.
