February 23, 2012
California pending home sales higher in January; short sales rise to highest level in three years, C.A.R. reports
LOS ANGELES (Feb. 23) – Pending home sales in California climbed in January from both the previous month and the previous year, according to data collected by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Additionally, distressed home sales rose in January, comprising about half of all homes sold.
Pending home sales:
C.A.R.’s Pending Home Sales Index (PHSI)* rose from a revised 91.0 in December to 102.4 in January, based on signed contracts. The index also was up from the 93.1 recorded in January 2011, marking the ninth consecutive month that pending sales were higher than the previous year. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
Distressed housing market data:
- Equity sales made up 49.9 percent of home sales in January, down from 52.7 percent in December but up from 46.5 percent in January 2011.
- The total share of all distressed property types sold statewide increased to 50.1 percent in January, up from December’s 47.3 percent but down from 53.5 percent in January 2011.
- The share of short sales rose to its highest level in three years since C.A.R. began tracking this statistic. Of the distressed properties sold statewide in January, 23.8 percent were short sales, up from the previous month’s share of 22.2 percent and up from last January’s share of 22.2 percent.
- The share of REO sales rose in January to 25.9 percent, up from December’s 24.6 percent, but down from the 30.8 percent recorded in January 2011.
- Video of C.A.R. Chief Economist Leslie Appleton-Young discussing highlights of the January existing home sales and price report, which was released Feb. 15.
- Closed housing sales by sales type.
- Pending sales compared with closed sales.
- Historical trend in the share of equity sales compared with distressed sales.
- Housing supply for REOs, short sales, and equity sales.
Share of Distressed Sales to Total Sales
|Type of Sale||Jan. 2011||Dec. 2011||Jan. 2012|
|Other Distressed Sales
|Total Distressed Sales||53.50%||47.30%||50.10%|
Single-family Distressed Home Sales by Select Counties
(Percent of total sales)
|County||Jan. 2011||Dec. 2011||Jan. 2012|
|San Luis Obispo||47%||48%||49%|
**Note: C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state. Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market. A sale is listed as pending after a seller has accepted a sales contract on a property. The majority of pending home sales usually becomes closed sales transactions one to two months later. The year 2008 was used as the benchmark for the Pending Homes Sales Index. An index of 100 is equal to the average level of contract activity during 2008.
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.