REAL ESTATE NEWS...CALIFORNIA PENDING HOME SALES CLIMB IN FEBRUARY

CALIFORNIA PENDING HOME SALES CLIMB IN FEBRUARY
Pending home sales in California soared in February to record the first double-digit annual gain in nearly three years and the third straight year-to-year increase, suggesting improved market conditions and more closed transactions in the coming months, C.A.R. reported this week.

Pending home sales data:

• California pending home sales jumped in February, with the Pending Home Sales Index (PHSI)* increasing 24.8 percent from a revised 89.9 in January to 112.2, based on signed contracts.  The month-to-month increase easily topped the long-run average increase of 17.9 percent observed in the last seven years.
• Statewide pending home sales were up 15.6 percent on an annual basis from the 97.1 index recorded in February 2014.  The yearly increase was the largest since April 2009 and was the first double-digit gain since April 2012.

Equity and distressed housing market data:

• The share of equity sales – or non-distressed property sales – grew slightly as a share of the market after declining for three straight months.  Equity sales made up more than 89 percent of all home sales in February, up from 88.1 percent in January and 85 percent in February 2014. Equity sales have been more than 80 percent of total sales since July 2013 and have risen to or near 90 percent since mid-2014.
• Meanwhile, the combined share of all distressed property sales fell in February, down from 11.9 percent in January to 10.9 percent in February.  Distressed sales made up 15 percent of total sales a year ago.  Seventeen of the 43 counties that C.A.R. reported show month-to-month decreases in their distressed sales shares, with Amador and Mariposa having the smallest share of distressed sales at 0 percent, followed by San Mateo (2 percent) and Marin (3 percent).  Glenn County had the highest share of distressed sales at 36 percent, followed by Yuba (25 percent) and Siskiyou (24 percent).

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