Back-to-back increase in October pending home sales point to year ending on a high note
LOS ANGELES (Nov. 25) – Pending home sales in California picked up steam in October and rose for the second straight month, portending a pickup in closed sales for the remainder of the year, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.
Pending home sales data:
• California pending home sales were up in October, with the Pending Home Sales Index (PHSI)* rising 2 percent from a revised 102.6 in September to 104.6 in October, based on signed contracts. October’s increase was the first back-to-back increase since early this year, when pending sales rose for three straight months, starting in January.
• Pending sales dipped 0.5 percent from the revised 105.2 index recorded in October 2013. The yearly decrease was significantly lower than the six-month average of -6.7 percent from April 2014 to September 2014.
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.