California pending home sales register first annual increase in nearly two years
REALTORS® say improving economic conditions and buyer urgency point to better market in 2015
LOS ANGELES (Jan. 23) – Pending home sales posted higher on a year-over-year basis for the first time since January 2013 and as expected, declined from the previous month due primarily to a seasonal slowdown toward the end of the year, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.
Additionally, with the specter of a better economy, greater job growth, and increasing household formation, C.A.R.’s new Market Pulse Survey found that many REALTORS® expect market conditions to improve in 2015, as does C.A.R.
Pending home sales data:
• Pending sales were up 2.6 percent from the 69.1 index recorded in December 2013. The yearly increase was better than the six-month average of -4.3 percent from June 2014 to November 2014.
• California pending home sales dropped in December, with the Pending Home Sales Index (PHSI)* falling 21.9 percent from 90.7 in November to 70.9 in December, based on signed contracts. The monthly decline was in line with the seasonal slowdown in pending sales observed at the end of the year for the last two years.
C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state. Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market. A sale is listed as pending after a seller has accepted a sales contract on a property. The majority of pending home sales usually becomes closed sales transactions one to two months later. The year 2008 was used as the benchmark for the Pending Homes Sales Index. An index of 100 is equal to the average level of contract activity during 2008.