Pending home sales dial up again in February; distressed housing market stabilizes
LOS ANGELES (March 25) – Pending home sales posted stronger than average gains in February for the second straight month, thanks to seasonal factors, but remained below the level of a year ago, despite slight improvements in the statewide housing demand, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.
Pending home sales data:
• California pending home sales jumped 14.2 percent in February, with the Pending Home Sales Index (PHSI)* rising from 84.8 in January to 96.8 in February, based on signed contracts. Pending sales were down 12 percent from the 110.1 index recorded in February 2013. The year-over-year decline was the sixth straight annual double-digit drop in the PHSI, but should start to taper in the upcoming 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.