Surprise surge in home sales

<p>Continuing a spring upswing, Sonoma County home sales rose in May and dented the supply of properties on the market for the first time since the onset of housing’s slump three years ago.</p><p>Industry observers cautioned that a turnaround remained months away because the bulk of sales are in lower price ranges flooded by foreclosed homes, pulling down values in many areas. The area’s typical house sold in May for $425,000, a 26 percent decline from a year ago.</p><p>First-time buyers, as well as investors, are competing for the best deals. Clearing out more distressed homes from the real estate listings should eventually bring some stability to the housing market, analysts said.</p><p>“If we didn’t have the foreclosure market, we wouldn’t have a market. We’ve got to work through at least another year of this,” said Mike Kelly, an agent with Keller Williams Realty in Santa Rosa.</p><p>The market has been inundated with distressed properties. Banks are slashing prices to get foreclosed homes off their books as record numbers of homeowners continue going into default. Some attempt to sell for prices far less than what they owe on mortgages, known as a short sale.</p><p>As a result, prices have been driven down in many neighborhoods - drawing more buyers off the sidelines.</p><p>The 375 sales of existing homes in May were up 9.3 percent from the same month a year ago and follow a similar annual sales increase in April.</p><p>While sales remain below historical monthly averages, the pace of deals is quickening. Sellers accepted offers on 529 homes in May, up 52 percent from a year ago. Those deals should close in June or July.</p><p>“All of these buyers have come off the fence. They have been waiting a long time for market conditions to be such as they are now,” said Toni D’Angelo, an agent with Coldwell Banker in Santa Rosa.</p>