Pending home sales in California continued to improve from a year ago with solid gains, which will position the market for a modest increase in home sales in 2016, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
Making sense of the story
- Statewide pending home sales remained strong in December on an annual basis, with the Pending Home Sales Index (PHSI) increasing 8.3 percent from 71.9 in December 2014 to 77.9 in December 2015, based on signed contracts. The annual increase was the smallest since January 2015.
- On a monthly basis, California pending home sales fell from November, primarily due to seasonal factors. The PHSI decreased 22.4 percent from an index of 100.4 in November to 77.9 in December.
- At the regional level, pending sales were higher on a year-over-year basis in all areas, with the Central Valley and San Francisco Bay Area regions increasing at a double-digit rate, while Southern California edged up in the low single-digits. All regions experienced a sharp month-to- month decline in pending sales.
- San Francisco Bay Area pending sales fell 36.4 percent from November to reach an index of 81.7 in December, down from November’s 128.4 and up 12.4 percent from December 2014’s 72.7 index.
Pending home sales in Southern California decreased 19.3 percent from November to reach an index of 69 in December, down from November’s index of 85.5 and up 2.5 percent from an index of 67.4 a year ago.
The share of equity sales – or non-distressed property sales – edged up in December and remained at the highest levels since the fall of 2007. Equity sales now make up 93.6 percent of all sales, up from 90.1 percent a year ago.
The combined share of all distressed property sales (REOs and short sales) dipped in December to 6.4 percent of total sales and was down from 9.9 percent a year ago.
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