California Foreclosures Accounted for 36 Percent of Sales

by Donald Hanz on States

California foreclosures still accounted for a big percentage of total home sales in May, based on sales report from a real estate firm.

Of the nearly 41,000 homes sold throughout the state in May, nearly 36 percent or 14,543 units were foreclosure homes. For those interested in buying foreclosed homes for sale in California, this high total of properties sold meant that they are on the right track. They will also find good foreclosures, as filings and bank repossessions continued to increase in the state compared to the previous month.

Total sales in May marked a jump of more than 9 percent from the 37,481 homes sold in the previous month and an increase of almost 5 percent from the more than 39,000 units sold one year earlier.

Since 1998, the lowest house sales total for May was the 32,223 posted in 1995 while the highest was 67,958, achieved in 2004. The average total for May is 47,024 units.

The pace of California foreclosures increased in May after declining in April month-over-month by more than 25 percent. There were 25,156 pre foreclosed homes – those posted for trustee sale – and there were 16,932 bank repossessed units. Another 27,637 were hit with default and lis pendens notices, putting the overall total of homes in foreclosure at 69,725, the highest number posted by a state in May.

Again, California was number one in rankings of home foreclosures by state in May. Based on foreclosure percentage, however, it was Nevada still on top with a rate of one filing per 69 homes.

The price median for homes sold in May was $278,000, an increase of 9 percent from the April median of $255,000 and a spike of 21 percent from the May price median of $230,000.

Despite the still high percentage of sales of California foreclosures in May, the percentage was lower than the previous rate of 38 percent in April and far below the 50.2 percent in May last year.