Pending home sales dropped from both the previous month and last year in November, indicating that the robust sales registered in November will likely not be repeated in the months ahead, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said Thursday.
California’s housing market showed signs of slowing competition with more properties selling below asking price and fewer properties receiving more than three offers compared to a year ago, as reflected in C.A.R.’s November Market Pulse Survey.
Pending home sales data:
- Based on signed contracts, statewide pending home sales fell in November on a seasonally adjusted basis, with the Pending Home Sales Index (PHSI)* falling 3.5% from 118.5 in November 2015 to 114.4 in November 2016 – the first year-to-year decrease in eight months. On a monthly basis, California pending home sales were down 4% from the October index of 119.1.
- At the regional level, for Southern California as a whole, pending sales dropped 11.9% on a monthly basis and were up 3.9% on an annual basis. Los Angeles, Orange, and San Bernardino counties posted healthy year-over-year increases of 7.5%, 5.3%, and 5%, respectively.
- For the San Francisco Bay Area as a whole, pending sales were 18.1% lower than October and 12.3% lower than November 2015, as high housing prices continued to erode affordability. San Francisco, San Mateo, and Santa Clara counties all experienced annual declines in pending home sales of 1.1%, 8.7%, and 14.9%, respectively.
- Overall pending sales in the Central Valley declined from both the previous month and year, decreasing 4.7% from October and 4.6% from a year ago.
