Distressed Housing Market Shrinks Dramatically since Housing Downturn of Great Recession, C.A.R. Reports

LOS ANGELES--()--Vastly improved home prices over the past five years have changed the landscape of California’s distressed housing market, which is now just a fraction of what it was during the Great Recession, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

In January 2009, 69.5 percent of all homes sold in California were distressed, which includes short sales and real estate-owned (REOs) properties. Five years later, that figure has shrunk to 15.6 percent. More specifically, REOs comprised 60 percent of all sales in January 2009, while short sales made up 9.1 percent of all sales but rose to as high as 25.6 percent in January 2012. Short sales currently make up 9.2 percent of all sales.

During the same time period, California’s median home price has soared more than 64 percent from $249,960 in January 2009 to $410,990 in January 2014.

“The dramatic drop in the share of distressed sales throughout the state reflects a market that is fully transitioning from the housing downturn,” said C.A.R. President Kevin Brown. “Significant home price appreciation over the past five years has lifted the market value of many underwater homes, and as a result, many homeowners have gained significant equity in their homes, resulting in fewer short sales and foreclosures.”

The statewide share of equity sales hit a high of 86.4 percent in November 2013 and has been above 80 percent for the past seven months.

In some of the hardest hit California counties, the distressed market in January 2009 was 93.6 percent in Stanislaus County, 93 percent in San Joaquin County, 89.5 percent in San Benito County, 86.1 percent in Kern County, 85.6 percent in Sacramento County, 84.2 percent in Fresno County, and 83.6 percent in Monterey County. The distressed market now has shrunk to 24.8 percent in Stanislaus, 25.1 percent in San Joaquin, 17.5 percent in San Benito, 18.4 percent in Kern, 19.9 percent in Sacramento, 26.3 percent in Fresno, and 16.9 percent in Monterey counties.

Of the reporting counties, San Luis Obispo, Orange, Santa Clara, and San Mateo counties held the lowest share of distressed sales in January 2014 at 10.2 percent, 9.5 percent, 7.7 percent, and 6.8 percent, respectively.

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 165,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Single-family Distressed Home Sales by Select Counties

       
Distressed Sales by County     Jan. 2014     Jan. 2009
 
California     15.6 %     69.5 %
El Dorado     20.1 %     63.0 %
Fresno     26.3 %     84.2 %
Kern     18.4 %     86.1 %
Los Angeles     15.8 %     62.4 %
Monterey     16.9 %     83.6 %
Orange     9.5 %     60.3 %
Placer     15.1 %     68.1 %
Riverside     15.6 %     79.4 %
Sacramento     19.9 %     85.6 %
San Benito     17.5 %     89.5 %
San Bernardino     21.7 %     81.9 %
San Joaquin     25.1 %     93.0 %
San Luis Obispo     10.2 %     52.2 %
San Mateo     6.8 %     48.2 %
Santa Clara     7.7 %     68.0 %
Santa Cruz     11.6 %     56.6 %
Stanislaus     24.8 %     93.6 %
Tulare     20.0 %     45.8 %
Yolo     13.3 %     74.5 %

Contacts

CALIFORNIA ASSOCIATION OF REALTORS®
Lotus Lou, 213-739-8304
lotusl@car.org

Single-family Distressed Home Sales by Select Counties (Graphic: Business Wire)

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Contacts

CALIFORNIA ASSOCIATION OF REALTORS®
Lotus Lou, 213-739-8304
lotusl@car.org