Lowest REO Sales Since October 2007 in California

ThernCalifornia Association of Realtors® (C.A.R.) reports that May salesrnof bank-owned properties (REO) were at the lowest level since Octoberrn2007. Equity home sales (i.e. non-distressed property sales) grew to<bnearly four out of every five sales while sales of foreclosed homesrnwere in the single digits for the second straight month, falling fromrn9.2 percent in April to 7.3 percent in May. REO properties accountedrnfor 22 percent of home sales in May 2012.</p

Thernshare of the market going to short sales remained relativelyrnunchanged, easing down from 14.8 percent in April to 14 percent inrnMay. The combined share of depressed property sales was downrnyear-over-year in 31 of the 36 California counties reporting.  Equityrnsales increased to 78.2 percent in May from 75.6 percent n April. Equity sales had a 55.8 percent market share in May 2012.</p

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Exceptrnfor REO, inventories of available homes fell again in May. Thernsupply of unsold REO homes was unchanged at 1.7 months but the supplyrnof short sales dropped from 2.7 months to 2.3 months and the supplyrnof unsold equity properties decreased slightly to 2.8 from 2.9rnmonths.</p

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C.A.R.’srnPending Home Sales Index (PHSI) edged up 0.3 percent in May torn122.1, up from 121.7 in April, based on signed contracts. rnPending sales were down 3.1 percent from the 125.9 index recorded inrnMay 2012.  Pending home sales are forward-looking indicators ofrnfuture home sales activity, providing information on the futurerndirection of the market.</p

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