Only 20.1% of property sales in California during the month of June classified as distressed sales, the rest involved homes with some equity, suggesting a significant turnaround in the market this past year.
The California Association of Realtors made this claim in a new report that also shows 21 of 36 counties reporting a month-to-month decline in the number of distressed sales making up total sales during June.
A year ago, distressed sales still made up 42.2% of all sales recorded in California. Since then, home price growth has helped stabilize the market, creating more borrowers with equity in their properties, C.A.R. added.
Sales of REOs in California also fell, with REO sales representing only 6.6% of sales in June, down from 7.3% in May and 20.4% from June 2012.
Homes sold with some equity attached continued to grow, representing 79.9% of all sales in June, up from 57.8% a year ago.