Pending Home Sales in California Rebound in October

Pending Home Sales in California Rebound in October

Residential News » San Diego Edition | By Miho Favela | November 25, 2015 8:30 AM ET

Southern California, Bay Area regions rise, Central Valley dips

According to the California Association of Realtors, pending home sales bounced back from the previous month at the statewide level in October 2015. Pending sales were also significantly higher on an annual basis, portending higher closed escrows in the next couple of months.

Pending home sales data:
  • Statewide pending home sales increased in October, with the Pending Home Sales Index (PHSI)* rising 2.5 percent from a revised 110.7 in September to 113.4 in October, based on signed contracts. The month-to-month gain was better than the average increase of 0.9 percent from September to October observed in the last seven years.
  • On an annual basis, statewide pending home sales were up 13.9 percent from the revised 99.5 index recorded in October 2014. Pending sales have been increasing on a year-over-year basis since November 2014 and have seen double-digit increases for nine straight months.
At the regional level, pending sales were higher on a year-over-year basis in all areas, with Southern California and Central Valley both increasing at a double-digit rate compared to last October.
  • San Francisco Bay Area pending sales rose 16.3 percent to reach an index of 145.6 in October, up from September's 125.2 and up 16.1 percent from October 2014's 125.4 index.
  • Pending home sales in Southern California increased to 94.3 in October, up 9.8 percent from 85.9 in September and up 9 percent from an index of 86.5 a year ago.
  • Central Valley pending sales dropped in October to reach an index of 89.5, down 13.9 percent from September's 103.9 index but up 18.6 percent from October 2014's 75.5 index.
Equity and distressed housing market data:
The share of equity sales - or non-distressed property sales - dipped in October but remained at the highest levels since the fall of 2007. Equity sales now make up 93.7 percent of all sales, up from 91.5 percent a year ago.
The combined share of all distressed property sales (REOs and short sales) edged up in October to 6.3 percent of total sales, but was down from 8.5 percent a year ago.
Fifteen of the 44 counties that C.A.R. reports showed month-to-month decreases in their share of distressed sales, with Mariposa having the smallest share of distressed sales at 0 percent, followed by San Francisco (0.4 percent), San Mateo (0.8 percent), and Santa Cruz (1.3 percent). Madera had the highest share of distressed sales at 19 percent, followed by Siskiyou (16.4 percent), Yuba (12.1 percent), and Tulare (11.9 percent).

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