Tag Archives: pending home sales

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.

Update on California’s Pending Home Sales – July 2016

California pending home sales post third straight annual June

Source: C.A.R.

urban real estate prices, most live in suburbsLed by the San Francisco Bay Area, California pending home sales continued their June to post three straight months of annual increases, according to the CALIFORNIA OF REALTORS® (C.A.R.).

Making sense of the story

  • Statewide pending home sales rose in June on an annual basis, with the Pending Index (PHSI) increasing 3.2 percent from 123.4 in June 2015 to 127.3 in signed contracts. With pending sales on a rising trend in the past couple increase should portend for higher closed transactions in July and August.
  • California pending home sales declined 7.0 percent on a monthly basis compared primarily due to seasonal factors. When adjusting pending sales for typical pending sales were down 3.2 percent from May and up 3.0 percent from June 2015.
  • After trailing behind Southern California and the Central Valley since the the San Francisco Bay Area led the regions, with pending sales increasing across the state.
  • For the Bay Area as a whole, pending sales were up 5.1 percent from June percent from May. The June increase in Bay Area pending sales suggests the region, which had been trailing behind 2015 in closed sales, primarily and tight inventory.
  • Pending home sales in Southern California as a whole rose 3.2 percent from percent from May, thanks to year-over-year gains of 5.5 percent in Los Angeles percent in San Bernardino County, and 1.3 percent in San Diego County.
  • Pending sales in Central Valley posted a gain of 2.6 percent from the previous down 9.3 percent on a month-to-month basis.
  • Orange County experienced a 6.0 percent decrease from the previous year.

Read the full story: http://www.car.org/newsstand/newsreleases/2016releases/june2016pending

Homes under contract hit 2.5-year high in November

Demand in the Northeast and West drove an increase in pending home sales in November to the highest level in 2 1/2 years.

Pending home sales grew by 1.7 percent from October to November and were up 9.8 percent from a year ago, reaching their highest level since April 2010, when buyers were rushing to claim an expiring federal homebuyer tax credit, the NATIONAL ASSOCIATION OF REALTORS® reported.

It was the third consecutive month-over-month increase in NAR’s Pending Home Sales Index, which tracks homes under contract that haven’t yet closed. Pending home sales have posted annual gains for 19 consecutive months, NAR said.

“Even with market frictions related to the mortgage process, home contract activity continues to improve,” NAR Chief Economist Lawrence Yun said in a statement. “Home sales are recovering now based solely on fundamental demand and favorable affordability conditions.”

NAR is projecting that existing-home sales will rise 8 to 9 percent in 2013 to about 5.1 million, following a 10 percent gain expected for all of 2012. NAR expects the median existing-home price to increase by about 4 percent in 2013, after posting a 7 percent gain in 2012.

In the Northeast, the Pending Home Sales Index rose 5.2 percent from October to November, to 83.3, up 15.2 percent from a year ago.

In the Midwest, the index was essentially unchanged from October to November, rising 0.1 percent to 103.8. Looking back a year, the index was up 15.2 percent in the Midwest.

Pending home sales in the South were unchanged from October to November. The index reading of 117.2 represented a 13.9 percent gain from a year ago.

In the West, the index was up 4.2 percent from October to November, but at 110.1 was down 3.2 percent from a year ago, as scarce inventory limited sales.

An index value of 100 is equal to the average level of contract activity during 2001, the first year to be examined and a year in which sales fell within a normal range for the current U.S. population.

Pending Home Sales at Highest Level Since March 2007

“The Pending Home Sales Index (PHSI) jumped 5.2 percent in October to 104.8, its highest level since March 2007, the National Association of Realtors (NAR) reported Thursday. Economists had expected a smaller increase to 100.5.

 The September index was revised up to 99.6 from the originally reported 99.5.

On Wednesday, the Census Bureau and HUD reported jointly new home sales—the equivalent of the PHSI—had declined an ever-so-slight 0.37 percent in October. Both reports measure contracts for the purchase of a home.

The PHSI and new home sales report usually move in the same direction…”

Read the rest of DSNews.com’s article here: “Pending Home Sales at Highest Level Since March 2007”.

NAR: 2012 home sales will be strongest in past 5 years

The NATIONAL ASSOCIATION OF REALTORS® is predicting existing-home sales will jump 7 to 10 percent in 2012 to the highest level in five years, based on an “uneven but higher sales pattern” so far this year.

Pending home sales fell a seasonally adjusted 0.5 percent from January to February, which was up 9.2 percent from the same time a year ago, NAR said in releasing its latest Pending Home Sales Index.

NAR also reported a similar trend for existing-home sales, which were down 0.9 percent from January to February, but up 8.8 percent from a year ago.

The pending sales data released today provides a glimpse into more recent trends, because it tracks homes that were under contract in February — deals that will in most cases be finalized within one or two months.

NAR said 31 percent of REALTORS® experienced contract failures in February, in some cases because buyers’ mortgage applications were rejected or because appraisals came in below the negotiated price.

In the Northeast, NAR’s index slipped a seasonally adjusted 0.6 percent from January but was up 18.4 percent from a year ago.

The Midwest saw a month-over-month gain of 6.5 percent and a 19 percent gain from a year ago.

Pending home sales fell 3 percent in the South from January to February, but were up 7.8 percent from a year ago.

In the West, the index declined 2.6 percent from January to February and was 1.8 percent below the index rating in February 2011.

In its latest economic forecast, NAR predicts existing-home sales will total 4.65 million in 2012, up 9.1 percent from last year. That forecast assumes that the U.S. economy will grow at a 2.3 percent annual rate and add 2.7 million jobs this year.