The California real estate market reached a milestone in March when less than 30% of home sales involved distressed properties for the first time in five years.
The California Association of Realtors reported Monday that the share of REO and short sales fell to 29% of sales in March from 33% in February.
A year ago, distressed sales comprised 51% of
In March, previously owned homes in California sold at a 417,520 seasonally adjusted annual rate, up 5% from a year ago.
“Recent gains in home prices are increasing the market value of many underwater homes,” said CAR president Don Faught. “As a result, many homes that were previously listed as short sales are now selling as equity sales, as is indicated by the 5% drop in the share of short sales compared with last year.”
Short sales comprised 17.3% of sales in March, compared to 22.6% in March 2012.
REO sales comprised 10.2% of March sales, compared to 26% a year ago.
The statewide median price of an existing single-family home rose 13.7% from February to $378,960 in March, the highest month-to-month increase since 1979. The increase in March also reversed a two-month decline in prices.
