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REALTOR®: Increase in March pending home sales an encouraging sign for spring housing market

Wednesday, April 23, 2014

California Association of REALTORS® (C.A.R.) stats for the statewide pending home sales in March are out and look encouraging for the spring housing market. The March index was the highest since July 2013. Also, 30 of the 38 reported counties showed a month-to-month decrease in the share of distressed sales, with Alameda, Marin, San Diego, San Mateo, and Santa Clara counties registering the smallest share.  

"Our housing market is in a good place right now with more sales and fewer distressed homes in the market. Sales have been weak, not due to the absence of demand, but because of the low inventory," said David Tonna, president of the Silicon Valley Association of REALTORS®.

C.A.R. reports pending home sales in the month of March rose to the highest level in eight months, climbing 17.8 percent, with the Pending Home Sales Index (PHSI) rising from 97.1 in February to 114.4 in March, based on signed contracts. Pending sales were down 9.9 percent from the revised 126.9 index recorded in March 2013. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

Meanwhile, the share of equity sales – or non-distressed property sales – has been increasing steadily over the past year. The share of equity sales increased to 87.6 percent in March, up from 85 percent in February.  Equity sales made up 71.8 percent of sales in March 2013.

Conversely, the combined share of all distressed property sales continues to drop, falling from 15 percent in February to 12.4 percent in March. They made up 28.2 percent of total sales a year ago. The share of short sales dropped to 6.6 percent in March, down from 8.2 percent in February and 17.2 percent in March 2013. The counties of Alameda, Madera, Marin, Monterey, Orange, Riverside, San Luis Obispo, and San Mateo experienced the greatest year-to-year improvement in fewer distressed property sales.

In Santa Clara County, the share of single-family distressed home sales was 5 percent in March, down from 7 percent in the previous month and 14 percent a year ago. San Mateo County's share of distressed home sales was 4 percent in March, down from 6 percent in February and 13 percent in March 2013.

"The good news is inventory is rising, though not fast enough to solve tight housing supply conditions. Demand for housing is over the top. There has been a tremendous job growth in our area, so new people are moving here and they need to find a place to live. We have to take into consideration that not many homeowners want to sell their home and move at this time," said Tonna.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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