Year-over year California pending home sales sag in January
WASHINGTON, DC – (RealEstateRama) — For the first time since August 2014, pending home sales in California decreased in January on an annual basis, according to a recent report from the California Association of REALTORS® (C.A.R.). On a monthly basis, statewide pending home sales rose from December.
Based on signed contracts, statewide pending home sales fell in January from the same time a year ago, with the Pending Home Sales Index decreasing 2.9 percent from 98.5 in January 2015 to 95.6 in January 2016. The index increased 21.1 percent from an index of 79 in December to 95.6 in January.
Pending home sales are forward-looking indicators of future home sales activity, offering information on the direction of the market. A sale is listed as pending after a seller has accepted a sales contract on a property.
At the regional level, pending sales also were lower on a year-over-year basis in all areas, though all regions experienced double-digit, month-to-month increases. In the San Francisco Bay Area, pending sales rose 13.9 percent from December to an index of 106.5 in January, up from December’s 93.5 index and down 4.7 percent from January 2015’s 111.8 index. In Santa Clara County, pending sales saw a drop of 10.6 percent when compared with January 2015.
“Low inventory has affected the year-over-year pending home sales statewide showing a small drop. California’s housing market continues to have a shortage of homes for sale,” said Karen Trolan, president of the Silicon Valley Association of REALTORS®.
“In Silicon Valley, as companies continue to grow and expand their workforce, the need for housing grows. We just need to build more housing,” added Trolan.
In a separate report, responding to C.A.R.’s January Market Pulse Survey, California REALTORS® reported nearly one in five homes (17 percent) closed above asking price in January, and 47 percent closed below asking price. More than one-third (36 percent) closed at asking price.
Two-thirds (66 percent) of properties received multiple offers in January, compared to 58 percent in January last year. The average number of offers per property was 2.1 in January, down from 2.5 in December and 2.5 in January 2015.
REALTORS® were optimistic about this year’s housing market, with the vast majority (88 percent) expecting similar or better market conditions in 2016. They reported floor calls and listing appointments in January were at the highest levels since June 2015. Open house traffic saw its best start to the year since the survey began two years ago.
The Market Pulse Survey is a monthly online survey of more than 300 California REALTORS®, which measures data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.
The Silicon Valley Association of REALTORS® ( SILVAR ) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term “REALTOR®” is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SILVAR Public Affairs, e-mail , or phone (408) 200-0109.
