California Real Estate Sales Dip — Except for Southern California

California pending home sales dip slightly in January; Southern California market continues to outshine other regions

Source: C.A.R.

Following relatively strong closed escrow home sales over the past few months, California
pending home sales slipped negligibly from a year ago, which suggests a softening in the
housing market in the upcoming months, the CALIFORNIA ASSOCIATION OF REALTORS®
(C.A.R.) said.

housing market forecast

Making sense of the story

  • Based on signed contracts, statewide pending home sales decreased in January on a
    seasonally adjusted basis, with the Pending Home Sales Index (PHSI)* slipping 0.2
    percent from 107.4 from January 2016 to 107.2 in January 2017. On a monthly basis,
    California pending home sales were down 9.2 percent from the December index of 118.0.
  • Only the Southern California region posted a year-over-year improvement in pending
    sales last month, rising 8.1 percent from January 2016 and increasing 10.5 percent on a
    monthly basis. Riverside County led the region in pending sales, posting a 16.2 percent
    increase from a year ago. Los Angeles, Orange, and San Diego counties also posted
    modest year-over-year increases of 7.1 percent, 8.0, and 4.0 percent, respectively. San
    Bernardino County was the only area within Southern California that saw pending sales
    lower on an annual basis by 2.8 percent.
  • For the San Francisco Bay Area as a whole, tight housing supplies and low affordability
    contributed to a fall in pending sales of 9.7 percent compared to January 2016. Only San
    Mateo County posted an annual increase, rising 5.3 percent from January 2016 after
    posting a significant double-digit annual decline (35.3 percent) in December. Pending
    home sales decreased 21.2 percent in San Francisco County, 7.1 percent in Santa Clara
    County, 24.9 percent in Monterey, and 4.8 percent in Santa Cruz County. A shortage of
    homes on the market and poor affordability will likely persist throughout the year, and
    impact Bay Area home sales.
  • Pending sales in the Central Valley fell 7.9 percent from January 2016 and were up 2.2
    percent from December. Within Central Valley, pending sales were down 14.6 percent in
    Kern County and 11.8 percent in Sacramento compared with a year ago.

Read the full story from CAR.org here.

John A Silva
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John A Silva

John Silva has over 21 years experience in residential real estate. He is a San Diego native, specializing in helping sellers & buyers, with extra experience in: modifications, short sales, and negotiation.
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