San Diego’s share of distressed home resales dropped in March to the lowest level in the state, according to the California Association of Realtors (CAR).
The San Diego share fell from 5 percent in February to 4 percent in March, which is down from 9 percent in March 2013.
Statewide, the share of equity resales increased to 87.6 percent in March, up from 85 percent in February.
Equity resales stabilized over the past several months but have started rising again, as the spring homebuying season takes off.
March marks the ninth straight month that equity resales have been more than 80 percent of total sales. Equity resales were 71.8 percent of total resales in March 2013.
The share of distressed resales in California fell from 15 percent in February to 12.4 percent in March. Distressed resales continued to be down by more than a half from a year ago, when the share was 28.2 percent.
Thirty of the 38 reported counties showed a month-to-month decrease in the share of distressed resales, with Alameda, Marin, San Diego, San Mateo, and Santa Clara counties registering the smallest share.
Alameda, Madera, Marin, Monterey, Orange, Riverside, San Luis Obispo and San Mateo counties experienced the greatest year-to-year improvement in fewer distressed home sales.
Of the distressed homes, the share of short sales dropped to levels last observed in March 2008 at 6.6 percent, down from 8.2 percent in February. March’s figure was nearly a third of the 17.2 percent in March 2013.
The share of REO sales also fell in March to 5.4 percent, down from 6.3 percent in February.
REOs resales are now about half what they were a year ago, when they made up 10.6 percent of all resales in March 2013.
Active listings across all property types, especially in equity properties, fell during March, tightening housing supply conditions.
The Unsold Inventory Index for equity sales dropped from 4.8 months in February to 4 months in March.
The supply of REOs dipped from 3 months in February to 2.8 months in March, and the supply of short sales slipped from 5 months in February to 4.7 months in March.
California pending home resales rose 17.8 percent in March, the highest level in eight months, to 114.4 on the Pending Home Sales Index (PHSI) from 97.1 in February, based on signed contracts.
The March index was the highest since July 2013.
Pending resales were down 9.9 percent from the revised 126.9 index in March 2013. The year-over-year decline in the PHSI has been tapering over the past few months.