July pending home sales lose steam; share of equity sales expands further, C.A.R. reports
LOS ANGELES (Aug. 23) – Despite ultra-low interest rates, California’s real estate market continued to underperform in July, with pending home sales posting lower for the fourth straight month. At the same time, equity home sales improved further, as both short sales and REO sales continued to decline, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.
Pending home sales data:
• California pending home sales fell in July, with the Pending Home Sales Index (PHSI)* dropping 2.3 percent from 107 in June to 104.5 in July, based on signed contracts. The month-to-month drop was consistent with seasonal trends.
• Pending sales were down 9.2 percent from the 115.1 index recorded in July 2013. Pending sales have been down year to year since October 2012, but the pace appears to be decelerating as the decrease in July was smaller than the average in the last six months. 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.