The state of California experienced an 11.2 percent jump in home sales for the year ending in May, according to a California Association of Realtors report released Wednesday.
Often considered a bellwether for economic and policy movement in other states, a positive shift in California could be taken as a good sign for the rest of the country.
May was the fourth-straight month of double-digit housing sales gains in California, on a year-over-year basis.
This is great news, not just for San Francisco or other parts of California, but for all over the country. This is largely due to California, given its huge population base, is widely considered a leading indicator for the entire U.S. housing market.
"Despite a slowdown in economic growth in recent months, sales in California remain strong as record low mortgage rates and favorable home prices continue to fuel demand in the housing market," said LeFrancis Arnold, CAR's president, in a release.
"The strong results in pending sales -- double-digit year-over-year gains in the last nine out of 10 months -- suggest solid housing market performance for the state in the upcoming months."
Meanwhile, the Commerce Department data on new home sales released on Monday showed a 7.6 percent rise in May from April, or 369,000 homes.
It was the best month for new homes sales since April 2010 when the expiring first-time homebuyer tax credit was nearing expiration leading to increased, albeit short-term, buying.
