California Foreclosures Made up 38 Percent of Home Resales

by Donald Hanz on States

Total sales of California foreclosures accounted for 38 percent of total home resales in April, based on data from a market research firm. These homes were foreclosed upon during the 12-month period ended April.

The percentage of foreclosure sales in April was an improvement from March, when 40.3 percent were bank owned properties. It was also much lower than the 55-percent share posted in April last year and the record high foreclosure share of 59 percent in February last year.

A total of 37,481 newly-built and pre-owned homes were sold in California in April, an increase of 0.5 percent from the 37,295 homes sold in March, but down by 1.3 percent from the 37,967 units sold in April last year.

The biggest home sales volume for the month of April occurred in 2004 when a whopping total of 71,638 homes were sold. The lowest was in 1995 when only 27,625 units moved. The average for the month was 44,758 units, higher than the total sales in April this year.

As the percentage of sales California foreclosures declined, price levels moved up. In April, the price median increased to $255,000, a spike of 15.4 percent from the April 2009 median of $221,000, which was the lowest median over the one-year period. The rise was the sixth straight year-over-year surge, following more than two years of continued decline. The peak median of $484,000 was reached in early 2007.

For people interested in buying foreclosure homes for sale, they still have a lot of buying opportunities as California still posted the highest total of filings despite a slowdown in statewide foreclosure activity.

Of the 69,725 homes in foreclosure in April, a total of 16,932 units were bought back by banks through foreclosure auctions, comprising 24.3 percent of all filings.

Because of the sharp drop in total California foreclosures, the state improved its rankings in charts of foreclosed homes by state. In April, California moved down the foreclosure rate charts to fourth-place from second-place in March.