California pending home sales down after robust March; tight housing supply persists
LOS ANGELES, CA – May 21, 2012 – (RealEstateRama) — After posting a strong performance in March, California pending home sales slipped in April, but were higher than a year earlier for the twelfth consecutive month, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today. Additionally, the share of equity sales posted its highest level in nearly four years.
Pending home sales:
C.A.R.’s Pending Home Sales Index (PHSI)* declined from a revised 138.9 in March to 128.0 in April, based on signed contracts. The index was up from the revised 114.4 index recorded in April 2011, marking the twelfth consecutive month that pending sales were higher than the previous year. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
“Inventory constraints could be a contributing factor to lower pending sales,” said C.A.R. President LeFrancis Arnold. “The tight inventory we’ve been experiencing in the distressed market over the past several months is now spreading to equity properties, essentially affecting the supply conditions of both the distressed and non-distressed markets.”
Distressed housing market data:
• The share of equity sales – or non-distressed property sales – compared with total sales increased to its highest level since July 2008 rising to 58 percent in April, up from 54.5 percent in March. Equity sales made up 52.3 percent of all sales in April 2011.
• Conversely, the total share of all distressed property types sold statewide decreased in April to 42.0 percent, down from March’s 45.5 percent and from 47.7 percent in April 2011.
• The share of short sales continued to decline in April. Of the distressed properties sold statewide in April, 19.4 percent were short sales, down from March’s share of 21 percent and only slightly higher than last April’s share of 19.1 percent.
• The share of REO sales hit the lowest level in four years, declining in April to 22.3 percent, down from March’s 24.1 percent and down from the 28.3 percent recorded in April 2011.
Multimedia:
• View a video of C.A.R. Chief Economist Leslie Appleton-Young discussing highlights of the April existing home sales and price report, which was released May 15.
• View a chart of closed housing sales in April by sales type.
• View a chart of pending sales compared with closed sales.
• View a chart of the historical trend in the share of equity sales compared with distressed sales.
• View a chart of housing supply for REOs, short sales, and equity sales in April.
Share of Distressed Sales to Total Sales
(Single-family)
| Type of Sale | April 2011 | March 2012 | April 2012 |
| Equity Sales | 52.3% | 54.5% | 58.0% |
| Total Distressed Sales | 47.7% | 45.5% | 42.0% |
| REOs | 28.3% | 24.1% | 22.3% |
| Short Sales | 19.1% | 21.0% | 19.4% |
| Other Distressed Sales (Not Specified) | 0.4% | 0.4% | 0.4% |
| All Sales | 100.0% | 100.0% | 100.0% |
Single-family Distressed Home Sales by Select Counties
(Percent of total sales)
| County | April 2011 | March 2012 | April 2012 |
| Amador | 65% | 64% | 41% |
| Butte | 50% | 40% | 44% |
| Fresno | 62% | 60% | 62% |
| Humboldt | 34% | 34% | 36% |
| Kern | 68% | 53% | 54% |
| Lake | 79% | 63% | 64% |
| Los Angeles | 47% | 48% | 44% |
| Madera | 56% | 68% | 67% |
| Marin | 28% | 29% | 29% |
| Mendocino | 56% | 50% | 67% |
| Merced | 61% | 56% | 58% |
| Monterey | 56% | 49% | 55% |
| Napa | 51% | 53% | 41% |
| Orange | 37% | 38% | 33% |
| Riverside | 66% | 59% | 56% |
| Sacramento | 67% | 59% | 61% |
| San Benito | 67% | 61% | 56% |
| San Bernardino | 70% | 63% | 57% |
| San Diego | 27% | 26% | 23% |
| San Luis Obispo | 43% | 39% | 44% |
| San Mateo | 26% | 27% | 24% |
| Santa Clara | 35% | 32% | 27% |
| Santa Cruz | 45% | 42% | 49% |
| Siskiyou | 58% | 78% | 62% |
| Solano | 73% | 69% | 66% |
| Sonoma | 54% | 53% | 44% |
| Tehama | 69% | 59% | 58% |
| Tuolumne | NA | NA | 61% |
| California | 48% | 45% | 42% |
*Note: 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.
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 155,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
