September 2011 home sales volume, trending up

35,404 new and resale home transactions closed escrow in California during September 2011, up 7% from one year ago when 33,176 sales closed escrow. September is the second month in 2011 in which home sales volume surpassed the corresponding month in 2010.

September’s numbers, however, are down 6% from August; a typical drop for this time of year.

The recovery’s overall bumpy plateauA recovery characterized by a prolonged pattern of short-term increases followed by short-term decreases in home sales volume and pricing, resulting in little or no long-term recovery trend. trend continues to reflect a leveling in home sales in 2011, following a decline that set in after mid-2010. Annual home sales volume is expected to remain at or below 2010’s numbers through the end of 2012.

Real estate owned property (REO) resales made up roughly 36% of all sales in the second quarter of 2011— down significantly from 46% one year earlier. However, this still-high proportion of REOs is expected to remain a constant for three or four years to come. In 2012, delinquencies are expected to be more efficiently foreclosed by servicers under contracts with big mortgage banks, which have thus far proven hesitant to foreclose in large numbers. [For our most current data on REOs statewide, see the first tuesday Market Chart, REO Resales.]