Sonoma County foreclosure sales drop to four-year low in October

Sonoma County home sales remained strong in October, even as the rate of foreclosure sales fell to its lowest level in more than four years.

Only 8 percent of the 480 single-family homes sold last month were bank-owned foreclosure properties, according to The Press Democrat's monthly housing report compiled by Pacific Union International Vice President Rick Laws.

It was the most homes sold for any October since 2008. At that time, half of the sales involved homes that previously had been lost through foreclosure.

The median sales price last month reached $366,000, an increase of 3 percent from September and 18 percent from a year ago.

However, Laws said the increases weren't due primarily to rising home values. Instead, he attributed them mostly to a decline in the sale of lower-end foreclosure properties and a rise in the sale of more-expensive homes by owners with equity.

"That's all due to a fairly dramatic shift in what price range is selling," he said.

For example, sales for the market segment priced at $400,000 to $700,000 have increased 38 percent to date this year, compared to 2011. In contrast, sales for homes priced at less than $300,000 rose 3 percent.

County median home prices reached a record high of $619,000 in August 2005 before tumbling to $305,000 in February 2009.

At the bottom of the cycle, three out of every four sales involved financially distressed properties -- mostly foreclosures, plus a small number of short sales.

In the past few years, the number of short sales has steadily increased and within the past year became roughly equal in number to foreclosure sales.

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