For release:
May 19, 2011

LOS ANGELES (May 19) – The share of distressed homes sold in California dropped for the second consecutive month in April, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today. 

“The share of sales of non-distressed properties increased during April, as bargain hunters and investors were joined by home buyers who are timing their buying decisions to coincide with the start of the spring home buying season,” said C.A.R. President Beth L. Peerce. 

Distressed housing market data:

• The total share of all distressed property types sold statewide declined in April to 48 percent, down from 51 percent in March and down from 49 percent in April 2010.
  
  
• Non-distressed sales made up the remaining share at 52 percent in April, up from 49 percent in March and up from 51 percent in April 2010.
  
  
• Of the distressed properties sold statewide, the total share of REO (real estate-owned) sales was 28 percent in April, down from 31 percent in March, and down from 30 percent in April 2010.
  
  
• The statewide share of short sales also dropped in April to 19 percent, down from 20 percent in March but unchanged from 19 percent in April 2010.

Pending home sales:

April pending home sales in California declined from March, according to C.A.R.’s Pending Home Sales Index (PHSI)*.  The index was 114.3 in April, down 11 percent from March’s revised index of 128.4, based on contracts signed in April.  The index was down 19.2 percent from April 2010, when the presence of housing tax credits played a strong role in home sales.  Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

Multimedia:

• View a video of C.A.R. Chief Economist Leslie Appleton-Young discussing highlights of the April existing home sales and price report, which was released May 16. 

Share of Distressed Sales to Total Sales
(Single-family)

Single-family Distressed Home Sales by Select Counties
(Percent of total sales)

N/A = data not available

*Note:  C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state.  Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market.  A sale is listed as pending after a seller has accepted a sales contract on a property.  The majority of pending home sales usually becomes closed sales transactions one to two months later.  The year 2008 was used as the benchmark for the Pending Homes Sales Index.  An index of 100 is equal to the average level of contract activity during 2008.

Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.