Pending home sales in California fell in September but were up from the previous year for the fifth consecutive month, according to a California Association of Realtors (C.A.R.) report. Additionally, distressed home sales increased slightly in September from the previous month and year.
Pending home sales are forward-looking indicators of future activity and provide information on the direction of the market. State sales fell 5.2 percent in September, according to C.A.R.’s Pending Home Sales Index. The index was 118.5 in September, based on contracts signed in that month, down from the August index of 125 but up 8.4 percent from September 2010.
“While recent pending home sales have increased from last year’s levels, housing inventory remains lean across all property types, particularly REOs (real estate-owned), which currently are at a 2.6-month supply,” said C.A.R. President Beth L. Peerce.
The total share of all distressed property types sold statewide rose to 44.4 percent in September, up from 43.7 percent in August and 43.6 percent in September 2010. Of the distressed properties sold statewide in September, 20.2 percent were short sales, up from the previous month’s share of 18.9 percent and last September’s share of 19.5 percent.
At 24 percent, the share of REO sales was down slightly from 24.4 percent in August but up from the 23.8 percent reported in September 2010. Equity sales made up the remaining share of home sales in September at 55.6 percent, down from 56.3 percent in August and 56.4 percent in September 2010.