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SD distressed resales unchanged in November

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Although the share of single-family distressed home resales in San Diego remained unchanged at 5 percent in November from October, according to the California Association of Realtors (CAR), the distressed share dropped 13 percent last month from a year ago.

Statewide, the share of equity sales — or non-distressed property equity resales — has been more than 80 percent of total resales.

The share of equity resales in November increased to 86.4 percent, up from 85.4 percent in October. Equity resales made up 64.6 percent of sales in November 2012.

The combined share of all distressed property resales shrank in November, dropping from 14.6 percent in October to 13.6 percent in November.

Distressed resales were down by nearly two-thirds from a year ago, when the share was 35.4 percent.

Twenty-one of the 38 reported counties showed a month-to-month decrease in the share of distressed resales, with Santa Clara County having the lowest share at 4 percent.

Of the distressed California properties, the share of short sales was 8.8 percent in November, down from 9.5 percent in October. November’s figure was nearly a third of the 23.3 percent recorded in November 2012 and remains at the lowest levels since January 2009.

The share of REO (lender owned) sales edged down in November to 4.4 percent from 4.7 percent in October.

It was the fourth straight month that REOs made up less than 5 percent of sales. REOs made up only 11.8 percent of all sales in November 2012.

Housing inventory levels improved slightly for the second consecutive month but were still extremely low.

The Unsold Inventory Index for equity sales inched up from 3.4 months in October to 3.6 months in November.

The supply of REOs rose from 2.7 months in October to 3.4 months in November, and the supply of short sales increased from 3.6 months in October to 4.2 months in November.

California pending home resales fell in November, with the Pending Home Sales Index (PHSI) dropping 13.6 percent in November to 93.8, down from a revised 108.6 in October, based on signed contracts.

The monthly decline was the first double-digit drop in nearly a year.

Pending resales were down 9.4 percent from the 103.5 index recorded in November 2012.

Pending home resales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

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