The pending home sale in California has decreased 11.4 percent from 113.4 in October to 100.4 in November, based on the signed contracts, due to seasonal factors and delayed escrow closings caused by the new loan disclosure rules.
According to the press release of the California Association of Realtors on PR NewsWire, the pending home sales continued to stay strong and have been showing double-digit gains since 2014. The statewide pending home sales in November were increased by 13.6 percent from the 88.4 index recorded in November 2014. Southern California, Central Valley, and San Francisco Bay Area have experienced a double-digit increase of pending home sales in a year-to-year basis since November 2014, but show a decline in pending home sales in a month-to-month basis.
The California Association of Realtors' November 2015 Pending Home Sales Report shows that pending home sales in Southern California decreased to 85.5 in November, down 9.3 percent from 94.3 in October but up 10.6 percent from an index of 77.3 a year ago. The San Francisco Bay Area pending sales fell 11.8 percent to reach an index of 128.4 in November, down from October's 145.6 but up 17.7 percent from November 2014's 109.1 index, while Central Valley pending sales slipped in November to reach an index of 85.1, down 4.9 percent from October's 89.5 index but up 15.8 percent from November 2014's 73.5 index.
Pending home sales are forward-looking indicators of future home sales activity, offering concrete data on possible shifts 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.
C.A.R.'s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state.
