California pending home sales jump in March; short sales drop to lowest level in nearly six years
LOS ANGELES (April 23) – In an encouraging sign for a healthier spring home-buying market, California pending home sales increased more than usual and rose to the highest level in eight months. Meanwhile, the share of short sales has fallen to levels last observed in 2008, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.
Pending home sales data:
• California pending home sales climbed 17.8 percent in March, with the Pending Home Sales Index (PHSI)* rising from 97.1 in February to 114.4 in March, based on signed contracts. The March index was the highest since July 2013.
• Pending sales were down 9.9 percent from the revised 126.9 index recorded in March 2013. The year-over-year decline in the PHSI has been tapering over the past few 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.