Real Estate Snapshot

Pending home sales in California rose in February and increased from the previous month and year according to C.A.R.’s Pending Home Sales Index, based on signed contracts. The index also was up from data recorded in February 2011, marking the tenth month in a row that pending sales were higher than the previous year. C.A.R. President LeFrancis Arnold stated “A lack of inventory in the bank-owned (REO) and short sale market was a contributing factor to the decline in share of distressed sales in February,” “In fact, REO inventory declined 24 percent in February from the previous year, while short sale inventory dropped 17 percent during the same period.”

After declining for two consecutive months, equity sales (homes that are not distress sales or “upside down”) increased in February, making up 51.1 percent of sales in February. In January 2012 and February 2011, equity sales consisted of 49.9 and 44.8 percent respectively of all sales.

Statewide, the total share of all distressed property types sold went down in February to 48.9 percent, down from January’s 50.1 percent and from 55.2 percent in February 2011.

The share of short sales dipped slightly in February. Of the distressed properties sold statewide in January, 23 percent were short sales, down from the previous month’s share of 23.8 percent but increased from last February’s share of 22.9 percent.

The share of REO sales also edged down in February to 25.2 percent, down from January’s 25.9 percent and down from the 31.9 percent recorded in February 2011.

Locally, in Ventura County, we’ve seen prices increase slightly in the low end price range. Much of this is being driven by investors, though first time home buyers are a large part of the market too. A listing in the under $350,000 range is sure to sell fairly quickly if priced right and in decent condition with multiple offers not uncommon. The mid range homes seem to have stabilized and high end single family homes are still constricting somewhat.

Income property, particularly multiple units, are flying off the shelves as well since those with money in the bank are not getting a good return on their money.