Pending home sales reverse five-month decline to tick higher in September
LOS ANGELES (Oct. 28) – California pending home sales rose higher in September to post the first increase in six months, reversing the sales drop usually observed between August and September. Meanwhile, equity home sales made up nine in 10 home sales for the fourth straight month, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.
Pending home sales data:
• California pending home sales rose in September, with the Pending Home Sales Index (PHSI)* climbing 2.6 percent from 99.8 in August to 102.4 in September, based on signed contracts. The increase was significantly above the average August-to-September month-to-month change of -3 percent observed in the past six years.
• Pending sales dipped 0.5 percent from the 102.9 index recorded in September 2013. The year-to-year drop was the smallest since January 2013, when pending sales increased 2.9 percent on a yearly basis. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
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.