Business & Real Estate
- Published on Wednesday, 23 April 2014 01:01
- Written by Los Altos Town Crier Staff - Town Crier Report
The share of distressed home sales in California is just a fraction of what it was during the recession because of the acceleration of home prices, according to the California Association of Realtors.
Of the reporting counties, Santa Clara is currently among those with the lowest share of distressed sales in the state.
An association report comparing the distressed housing market today and during the downturn indicates that in January 2009, 69.5 percent of all homes sold statewide were distressed properties. Five years later, that figure has dropped to 15.6 percent. Meanwhile, California’s median home price has soared more than 64 percent from $249,960 in January 2009 to $410,990 in January 2014.
The rapid acceleration in home prices has changed California’s housing market landscape, said David Tonna, president of the Silicon Valley Association of Realtors.
“Underwater mortgages have dropped sharply,” he said. “During the downturn, approximately 35 percent of homes in the state experienced negative equity. Today, that share has dropped to approximately 13 percent.”
In January 2009, bank-owned properties made up 60 percent of all sales, and short sales totaled 9.1 percent of all sales. The share of short sales rose to as high as 25.6 percent in January 2012. Short sales currently constitute 9.2 percent of all sales statewide.
Of the reporting counties, San Luis Obispo at 10.2 percent, Orange at 9.5 percent, Santa Clara at 7.7 percent and San Mateo at 6.8 percent held the lowest share of distressed sales in January 2014. In January 2009, the shares of distressed sales in the counties were 52.2 percent in San Luis Obispo, 60.3 percent in Orange, 68 percent in Santa Clara County and 48.2 percent in San Mateo.