In California, the sale of distressed properties slowed as equity sales picked up in February after two months of decline, the California Association of Realtors (C.A.R.) reported this week. “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,” said C.A.R. President LeFrancis Arnold. “In fact, REO inventory declined 24 percent in February from the previous year, while short sale inventory dropped 17 percent during the same period.”
The share of distressed properties that sold statewide decreased to 48.9 percent in February, down from January’s 50.1 percent and from 55.2 percent a year ago in February 2011.
The share of REO sales was down in February and stood at 25.2 percent, a drop compared to January’s 25.9 percent and down from the 31.9 percent reported last year in February.
After seeing a two-month decline, equity sales increased in February, making up 51.1 percent of home sales.
Based on signed contracts, C.A.R.‘s Pending Home Sales Index went up from a revised 102.3 in January to 127.8 in February. The index also was up from the 111.8 index recorded February 2011. This is the 10th month in a row pending sales were higher than the previous year.