California Pending Home Sales Decline in November; Share of Equity Sales Expand, C.A.R. Reports

LOS ANGELES--()--Seasonal factors sent California pending home sales lower in November, while equity home sales continued their upward trend, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

Pending home sales data:

C.A.R.’s Pending Home Sales Index (PHSI)* fell 14.4 percent from a revised 121 in October to 103.5 in November, based on signed contracts. Pending sales were down 0.9 percent from the 104.4 index recorded in November 2011. 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:

  • The share of equity sales – or non-distressed property sales – compared with total sales rose in November. The share of equity sales in November increased to 64.9 percent, up from 63.4 percent in October, the highest level since May 2008, when the share was 66.5 percent. Equity sales made up about half (50.2 percent) of all sales in November 2011.
  • The combined share of all distressed property sales dropped to 35.1 percent in November, down from 36.6 percent in October and down from 49.8 percent in November 2011.
  • Of the distressed properties, the share of short sales was 23.4 percent in November, down from 24.4 percent in October but up slightly from 23 percent a year ago.
  • The share of REO sales dipped from 11.8 percent in October to 11.3 percent in November and was down from 26 percent in November 2011.
  • The available supply of REOs eased slightly in November, with the Unsold Inventory Index for REOs inching up from 1.9 months in October to 2.1 months in November. The November Unsold Inventory Index for both short sales and equity sales was 3.1 months.

Charts:

Share of Distressed Sales to Total Sales
(Single-family)
 
Type of Sale     Nov. 2012     Oct. 2012     Nov. 2011
Equity Sales     64.9%     63.4%     50.2%
Total Distressed Sales     35.1%     36.6%     49.8%
REOs     11.3%     11.8%     26.0%
Short Sales     23.4%     24.4%     23.0%
Other Distressed Sales (Not Specified)     0.4%     0.4%     0.3%
All Sales     100.0%     100.0%     100.0%
           
Single-family Distressed Home Sales by Select Counties
(Percent of total sales)
 
County     Nov. 2012     Oct. 2012     Nov. 2011
Alameda     25%     21%     NA
Amador     33%     38%     44%
Butte     37%     35%     36%
Contra Costa     29%     26%     NA
El Dorado     38%     36%     58%
Fresno     50%     48%     58%
Humboldt     19%     20%     28%
Kern     41%     41%     60%
Kings     45%     42%     NA
Lake     49%     50%     58%
Los Angeles     33%     37%     46%
Madera     58%     55%     88%
Marin     22%     21%     30%
Mendocino     36%     43%     52%
Merced     52%     47%     64%
Monterey     48%     45%     59%
Napa     32%     30%     53%
Orange     28%     28%     36%
Placer     35%     40%     54%
Riverside     51%     50%     61%
Sacramento     47%     47%     63%
San Benito     29%     58%     65%
San Bernardino     44%     46%     64%
San Diego     13%     14%     27%
San Joaquin     51%     49%     65%
San Luis Obispo     25%     29%     44%
San Mateo     17%     17%     28%
Santa Clara     19%     22%     32%
Santa Cruz     31%     28%     46%
Siskiyou     43%     32%     33%
Solano     55%     62%     72%
Sonoma     39%     29%     51%
Stanislaus     50%     55%     68%
Tehama     55%     43%     54%
Tulare     47%     46%     NA
Yolo     47%     45%     68%
California     35%     37%     50%
           

**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 155,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Contacts

CALIFORNIA ASSOCIATION OF REALTORS
Lotus Lou
(213) 739-8304
lotusl@car.org

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Contacts

CALIFORNIA ASSOCIATION OF REALTORS
Lotus Lou
(213) 739-8304
lotusl@car.org