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California Pending Sales Bounce Back; Potential Turning Point

by devteam February 27th, 2014 | Share

The index tracking pending home sales in California jumpedrn22.9 percent in January to 84.8 from 68.9 in December.  This was the first increase in the PendingrnHome Sale Index (PHSI) which is based on signed sales contracts, in threernmonths.</p

Whilernthe monthly increase could be viewed as an encouraging sign for spring, pendingrnsales were 17.5 percent below the PHSI of 102.8rnone year earlier.  This was the fifthrnstraight annual double-digit drop in the PHSI.  </p

</p

 “We’re starting to see a turning point in thernmarket as we approach the spring homebuying season.  Home sellers realizernthat home prices are holding steady and are gearing up for the upcoming seasonrnby listing their homes for sale, while prospective home buyers are getting morerncomfortable with stabilizing home prices and interest rates and are enteringrnthe market,” said C.A.R. President Kevin Brown.</p

There was an increase in inventoryrnacross all property types.  The UnsoldrnInventory Index for equity properties increased from 3 months in December torn4.4 months in January and the supply of bank-owned real estate (REO) listingsrnclimbed to 3.2 months from 2.8 months. rnThere was a 4.6 month supply of short sales 3.2 months in December</p

Equity or non-distressed home sales constitutedrnmore than 80 percent of sales for the 7th straight month althoughrntheir share dipped from 84.5 percent in December to 84.4 percent.  This is a strong comeback from January 2013rnwhen equity sales had a 64.2 market share.</p

Short sales had a 9.2 percent marketrnshare, less than half the 21.2 percent share of a year earlier and downrnslightly from 10 percent in December. rnSales of bank-owned real estate (REO) inched up to 5.9 percent from 5.0rnpercent in December.  Those sales had arn14.2 percent share in January 2013. </p

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About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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