Price Law Group - California Articles Distressed Sales On Downward Trend, Report Suggests

Distressed Sales On Downward Trend, Report Suggests

By Price Law Group  Dec. 12, 2012 1:40p

California Real Estate Market Showing Signs Of Life

Despite the economic turmoil of the past few years, real estate experts and housing market-watchers say they are optimistic for a recovery soon. According to a report released by the California Association of Realtors, the number of distressed sales has been on a steady decline in 2012, signaling what could be the beginnings of a housing recovery.

In the details of the report, released by CAR on November 21st, distressed sales in October have decreased to four-year lows. "Distressed sales" is an industry term referring to foreclosure sales and short sales. Short sales, when the lender agrees to sell the house for less than the homeowner owes, have been especially popular in the past year in the wake of the billion-dollar mortgage settlement that forced many lenders to revise their policies on foreclosure practices.

Despite their seeming popularity, however, both short sales and foreclosures are seeing downward trends. The CAR report indicates that distressed sales have decreased by as much as 50 percent from the previous year. Cautioning that these figures alone do not necessarily signal a recovery, the report suggests that the decease may simply be a result of banks choosing not to put foreclosed homes on the market, which would naturally lower the number of sales.

Pending Sales Index Rising, Gives Hope To Investors

Fortunately for homeowners, the report indicates that there is more to be optimistic about than decreased short and foreclosure sales. In addition to those numbers, the market has also seen a corresponding rise in the number of non-distressed equity sales. These sales have seen an increase of almost 50 percent from October 2011. This rate put equity sales at their highest point since 2008.

In addition to that promising sign, the report had another statistic giving experts hope. The report's Pending Homes Sales Index, or PHSI, rose from 115.2 to 120.2 in just the past month. CAR claims that the PHSI is a reliable predictor of future sales, and is used to give an indication of future trends on the market. With pending sales increasing, CAR representatives say, they believe the market will soon follow.

Do you need a fresh financial start?

If you, like millions of Americans, are suffering in the current economic climate, do not despair. Although the real estate market has been incredibly hard hit, you can seek the aid of a skilled bankruptcy lawyer to protect your family and property from foreclosure. At Price Law Group, our legal team has more than two decades of experience handling bankruptcy cases throughout California. Please, visit our website to learn more about the options available to you today.

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