The End of the 'Great Recession'? Realtor Association Says We're On Our Way

“The dramatic drop in the share of distressed sales throughout the state reflects a market that is fully transitioning from the housing downturn,” said C.A.R. President Kevin Brown.

The following is a news release from the California Association of Realtors: 

Vastly improved home prices over the past five years have changed the landscape of California’s distressed housing market, which is now just a fraction of what it was during the Great Recession, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said Tuesday. 

In January 2009, 69.5 percent of all homes sold in California were distressed, which includes short sales and real estate-owned (REOs) properties. Five years later, that figure has shrunk to 15.6 percent.  More specifically, REOs comprised 60 percent of all sales in January 2009, while short sales made up 9.1 percent of all sales but rose to as high as 25.6 percent in January 2012. Short sales currently make up 9.2 percent of all sales.

During the same time period, California’s median home price has soared more than 64 percent from $249,960 in January 2009 to $410,990 in January 2014.

“The dramatic drop in the share of distressed sales throughout the state reflects a market that is fully transitioning from the housing downturn,” said C.A.R. President Kevin Brown.  “Significant home price appreciation over the past five years has lifted the market value of many underwater homes, and as a result, many homeowners have gained significant equity in their homes, resulting in fewer short sales and foreclosures.”

The statewide share of equity sales hit a high of 86.4 percent in November 2013 and has been above 80 percent for the past seven months.

In some of the hardest hit California counties, the distressed market in January 2009 was 93.6 percent in Stanislaus County, 93 percent in San Joaquin County, 89.5 percent in San Benito County, 86.1 percent in Kern County, 85.6 percent in Sacramento County, 84.2 percent in Fresno County, and 83.6 percent in Monterey County.  The distressed market now has shrunk to 24.8 percent in Stanislaus, 25.1 percent in San Joaquin, 17.5 percent in San Benito, 18.4 percent in Kern, 19.9 percent in Sacramento, 26.3 percent in Fresno, and 16.9 percent in Monterey counties.

Of the reporting counties, San Luis Obispo, Orange, Santa Clara, and San Mateo counties held the lowest share of distressed sales in January 2014 at 10.2 percent, 9.5 percent, 7.7 percent, and 6.8 percent, respectively.

Single-family Distressed Home Sales by Select Counties


  • 15.6%
  • 69.5%

El Dorado

  • 20.1%
  • 63.0%


  • 26.3%
  • 84.2%


  • 18.4%
  • 86.1%

Los Angeles

  • 15.8%
  • 62.4%


  • 16.9%
  • 83.6%


  • 9.5%
  • 60.3%


  • 15.1%
  • 68.1%


  • 15.6%
  • 79.4%


  • 19.9%
  • 85.6%

San Benito

  • 17.5%
  • 89.5%

San Bernardino

  • 21.7%
  • 81.9%

San Joaquin

  • 25.1%
  • 93.0%

San Luis Obispo

  • 10.2%
  • 52.2%

San Mateo

  • 6.8%
  • 48.2%

Santa Clara

  • 7.7%
  • 68.0%

Santa Cruz

  • 11.6%
  • 56.6%


  • 24.8%
  • 93.6%


  • 20.0%
  • 45.8%


  • 13.3%
  • 74.5%
Alek J Hidell March 12, 2014 at 04:14 PM
This is to say that our housing bubble is back on...3 years ago there were a plethora of foreclosed houses you could purchase for under $200K. That is no longer the case..... I'm not sure if we should celebrate our homes increasing value of 10% each year, but I can assure you that our County is eager to raise our property taxes immediately based on this new "bubble". .. The flippers are back out in force, too.
Commonzenze March 12, 2014 at 04:23 PM
Time to dust off the "creative financing". Have to make it affordable for those that can't afford it, wouldn't be fair otherwise. Just in time for all those that lost their last house to jump back in the inflated market. Do we ever learn from the past.
Alek J Hidell March 12, 2014 at 04:40 PM
As long as the banks profited from it all, why should they?


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