There’s no doubt about it, the real estate market is making a comeback and many people are now surprised to find that they are no longer upside down on their home, or they have significantly larger amount of equity than previously thought. The California Association of Realtors is reporting that distressed sales (Short-sales/Foreclosures) are down into single digits in many counties across the state and showing numbers that are drastically different than the year prior. In San Diego alone, distressed sales in the month of May were at 7%, down from 23% in May 2012. The following is some of the data that the C.A.R. is reporting:
Distressed housing market data:
• The combined share of all distressed property sales continued to decline in May, dropping to 21.8 percent in May, down from 24.4 percent in April and down from 44.2 percent in May 2012. The share of all distressed sales in 31 of the 36 reported counties also declined significantly from the previous year, with Contra Costa, Marin, San Diego, San Mateo, and Santa Clara recording in the single-digits in May.
• The share of equity sales – or non-distressed property sales – increased further in May and now makes up more than three-fourths of total sales, the highest share since January 2008. The share of equity sales in May increased to 78.2 percent, up from 75.6 percent in April. Equity sales made up more than half (55.8 percent) of all sales in May 2012.
• Of the distressed properties, the share of short sales was 14 percent in May, down from 14.8 percent in April and down from 21 percent a year ago. The May 2013 figure was the lowest since July 2009. The continuing decline in short sales indicates more previously underwater homes are moving into positive equity.
• The share of REO sales fell to single-digits for the second straight month, dropping from 9.2 percent in April to 7.3 percent in May and from 22.8 percent in May 2012.
• The available supply of homes remained tight but was relatively unchanged from April. May’s Unsold Inventory Index for REOs was unchanged at a 1.7-month supply. The supply of short sales dipped from 2.7 months in April to 2.3 months in May. The May Unsold Inventory Index for equity sales was 2.8 months, down from 2.9 months in April.
So what does this mean for you? Maybe you have been wanting to get out of your property and you have been patiently waiting for the market to return and not show you upside down. Maybe you have been waiting to show some equity in your home so that you have the funds to make the purchase you have been dreaming of. Maybe you have been wanting to refinance and just haven’t had the proper ratios. Either way, it’s a great time to explore your options. If your curious what your home is worth, call me and I will put together a complimentary comparative market analysis (CMA) for your property and help you to make the best decisions regarding your real estate investments. Whether it’s time to buy or sell, I can assist you with all of your RE needs.