Fast-rising home prices are helping financially strapped homeowners, as fewer mortgages are underwater, pushing equity sales to the highest level in August since late 2007.
Equity sales – basically deals where homeowners walk away with money in their pocket – increased to 84.7% in August, compared to 82.9% in July and only 62% in August 2012, according to the California Association of Realtors. Equity sales have declined in 18 of the past 19 months.
Equity sales are now at the highest level since November 2007, and short sales were only 10.2% of the market in August, the lowest percentage since February 2009.
Twenty-five of the 38 counties tracked – some counties have too few sales to report – had a monthly decrease of distressed sales in August compared to July, with several counties in the single digits.
Siskiyou and Lake counties had the largest percentage of distressed sales at 37% and 34%, respectively. San Mateo County had the lowest at 3%.