According to the California Association of Realtors, California pending home sales dropped from both the previous month and last year in November 2015, indicating that the robust sales registered in November will likely not be repeated in the months ahead.
California's housing market showed signs of slowing competition with more properties selling below asking price and fewer properties receiving more than three offers compared to a year ago, as reflected in C.A.R.'s November Market Pulse Survey.
Pending home sales data:
Based on signed contracts, statewide pending home sales fell in November on a seasonally adjusted basis, with the Pending Home Sales Index (PHSI) falling 3.5 percent from 118.5 in November 2015 to 114.4 in November 2016 - the first year-to-year decrease in eight months. On a monthly basis, California pending home sales were down 4 percent from the October index of 119.1.
At the regional level, for Southern California as a whole, pending sales dropped 11.9 percent on a monthly basis and were up 3.9 percent on an annual basis. Los Angeles, Orange, and San Bernardino counties posted healthy year-over-year increases of 7.5 percent, 5.3 percent, and 5 percent, respectively.
For the San Francisco Bay Area as a whole, pending sales were 18.1 percent lower than October and 12.3 percent lower than November 2015, as high housing prices continued to erode affordability. San Francisco, San Mateo, and Santa Clara counties all experienced annual declines in pending home sales of 1.1 percent, 8.7 percent, and 14.9percent, respectively.
Overall pending sales in the Central Valley declined from both the previous month and year, decreasing 4.7 percent from October and 4.6 percent from a year ago.
According to the National Association of Realtors, U.S. pending home sales expanded in most of the country in July 2016, and reached their second highest reading in over a decade. Only the Midwest saw a dip in contract activity last month.