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California Short Sales Reach Highest Level in 3 Years

Pending homes sales in California were higher for January compared to the previous month and year, and short sales rose to the highest level in three years, according to the ""California Association of Realtors"":http://www.car.org/ (C.A.R.).

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Based on signed contracts, C.A.R.'s Pending Home Sales Index (PHSI) climbed from a revised 91 in December to 102.4 in

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January and was also up from last year when the PHSI was 93.1 in January 2011. Pending home sales are indicators of future home sale activities, providing information on where the market might be heading.

Of all distressed properties sold in California, 23.8 percent were short sales, the highest level in three years since C.A.R. has kept record. Previous month's data was at 22.2 percent and also 22.2 percent a year ago.

The share of REO sales were higher in January as well at 25.9 percent compared to the previous month of December, which stood at 24.6 percent. A year ago the numbers were higher at 30.8 percent.

Overall, the share of distressed property types that sold went up to 50.1 percent in January, an increase from 47.3 percent in the previous month, but a decrease from 53.5 percent a year ago in January 2011.

Non-distressed sales made up 49.9 percent of home sales in January, a decrease from the previous month, which stood at 52.7, but up from 46.5 percent last year.

About Author: Esther Cho

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