California's pending home sales showed a steady improvement in December 2015, and this may result to a modest rise of home sales in early 2016, says the California Association of Realtors.
Pending home sales are forward-looking indicators of future home sales activity, that was generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state, in order to provide 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.
According to the press release of CAR in PR NewsWire, the statewide Pending Home Sales Index has increased from 71.9 in December 2014 to 77.9 in December 2015, up by 8.3 percent. Even with the increase in the Pending Home Sales Index on a yearly basis, the December 2015 PHSI fell 22.4 percent from an index of 100.4 in November to 77.9 in December.
The San Francisco Bay Area and Central Valley has a double-digit rate increase with 12.4 percent and 12.9 percent respectively on a year-over-year basis, while Southern California staggered with a low single-digit increase of 2.5 percent. All the three regions have experienced a sharp decline in their month-to-month pending home sales rate.
The Pending Home Sales Index in San Francisco has fallen from November's 128.4 to 81.7 in December, decreasing by 36.4 percent. Southern California's pending home sales decreased 19.3 percent from November to reach an index of 69 in December, down from November's index of 85.5, while Central Valley's pending sales also fell from November to reach an index of 65.7, down 22.8 percent from November's 85.1 index.
The CALIFORNIA ASSOCIATION OF REALTORS® is a statewide trade association dedicated to the advancement of professionalism in real estate. The Association develops and promotes programs and services that will enhance the members' freedom and ability to conduct their individual businesses successfully with integrity and competency, as well as through collective action, promotes the preservation of real property rights.
