REAL ESTATE NEWS...CALIFORNIA PENDING HOME SALES DIAL BACK IN NOVEMBER

CALIFORNIA PENDING HOME SALES DIAL BACK IN NOVEMBER
Source: C.A.R.

California pending home sales retreated in November primarily due to seasonal factors and delayed escrow closings caused by new loan disclosure rules, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said.

Making sense of the story

• Statewide pending home sales fell in November, with the Pending Home Sales Index (PHSI)* declining 11.4 percent from 113.4 in October to 100.4 in November, based on signed contracts. The month-to-month decrease was the largest since December 2014.
   
• On an annual basis, California pending home sales remained strong and continued to improve from 2014 with double-digit gains. Statewide pending sales were up 13.6 percent from the 88.4 index recorded in November 2014. Pending sales have been increasing on a year-over-year basis since November 2014.
   
• At the regional level, pending sales were higher on a year-over-year basis in all areas, with Southern California, Central Valley, and San Francisco Bay Area all increasing at a double-digit rate compared to last November. All regions experienced a month-to-month decline in pending sales.
   
• The share of equity sales – or non-distressed property sales – dipped slightly in November but remained at the highest levels since the fall of 2007. Equity sales now make up 93.4 percent of all sales, up from 90.9 percent a year ago.
   
• With home prices leveling off in recent months, more sellers are adjusting their listing price to become more in line with buyers’ expectations. About one-third (30 percent) of properties had price reductions in November, down from 32 percent in October.
   
• When asked what REALTORS®’ biggest concerns are, more than one in four (28 percent) said a shortage of homes for sale, 22 percent indicated declining housing affordability, and 12 percent said overinflated home prices.
   
• REALTORS® were optimistic about next year’s housing market, with the vast majority (89 percent) expecting similar or better market conditions in 2016, the highest share since spring 2015.