California Association of Realtors data for statewide pending home sales in March appear encouraging for the spring housing market. The index reached its highest total since July 2013.
“Our housing market is in a good place right now, with more sales and fewer distressed homes on the market,” said Silicon Valley Association of Realtors President David Tonna. “Sales have been weak, not due to the absence of demand, but because of the low inventory.”
The California Association of Realtors reported that pending home sales in March rose to the highest level in eight months, climbing 17.8 percent, with the Pending Home Sales Index increasing from 97.1 in February to 114.4 in March, based on signed contracts. Pending sales dropped 9.9 percent from the revised 126.9 index recorded in March 2013. Pending home sales are indicators of future home-sales activity, providing information on the future direction of the market.
The share of equity sales rose to 87.6 percent in March, up from 85 percent in February. Equity sales made up 71.8 percent of sales in March 2013. Conversely, the combined share of all distressed property sales fell from 15 percent in February to 12.4 percent in March. They made up 28.2 percent of total sales a year ago.
In Santa Clara County, the share of single-family distressed home sales totaled 5 percent in March, down from 7 percent in the previous month and 14 percent a year ago.
“The good news is that inventory is rising, though not fast enough to solve tight housing supply conditions,” Tonna said. “Demand for housing is over the top. There has been a tremendous job growth in our area, so new people are moving here and they need to find a place to live. We have to take into consideration that not many homeowners want to sell their home and move at this time.”