August 25, 2011 (Shirley Allen)
Pending home sales in California declined in July after posting two consecutive months of gains according to the Pending Home Sales Index (PHSI) released by the California Association of Realtors (CAR).
The index declined 1.7 percent to 117.0 in July, down from June’s index of 119.0. The index was still 4.9 percent higher than July of 2010 when sales suffered a significant decline due to the end of the home buyer’s tax credit.
Pending home sales are an indicator of sales activity 30 to 45 days into the future.
“While pending home sales dipped in July, all indications show we should continue at the current level for the next couple of months,” said C.A.R. President Beth L. Peerce. “Pending sales have been ahead of last year’s level for the past three consecutive months and should be on track to finish the year even with last year’s pace.”
CAR also reports that distressed property sales fell to 44.5 percent of all sales in California in July, a drop from 46.9 percent in June. Distressed property sales were also lower than July 2010 when 47.7 percent of all sales that month were distressed properties.
Short sales made up 17.5 percent of total sales statewide in July, down from 19.3 percent in June and also down from 20.9 percent in July of 2010.
Foreclosed properties and real estate-owned (REO) properties made up 26.7 percent of the total sales statewide in July, down from 27.3 percent in June, but up from 26.3 percent in July of 2010.
Distressed property sales as a percentage of total sales were highest in Madera County at 86 percent and lowest in Marin County at 25 percent in July.
Tags: California, pending home sales, distressed properties, short sales, REO, foreclosed properties