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REALTOR®: California pending home sales rise over last year

Wednesday, June 27, 2012

The California Association of REALTORS® (C.A.R.) reports that although California pending home sales in May were flat from April, for the fourth consecutive month pending home sales experienced a double-digit gain from the previous year. C.A.R.'s Pending Home Sales Index was unchanged in May from a revised 128.8 in April, but the index was up from the 115.8 index recorded in May last year.

Pending home sales are forward-looking indicators of future home sales activity. A sale is listed as pending after a seller has accepted a sales contract on a property.  An index of 100 is equal to the average level of contract activity during 2008, the benchmark for C.A.R.'s Pending Homes Sales Index.

According to data from MLSListings Inc., Santa Clara County had a total of 2,482 single-family home sales under contract, compared with 2,555 in May last year. In April, the county had 2,464 single-family home sales under contract.

"We're encouraged that the number of home sales under contract in May was up slightly from April. What is hurting our market right now is the low inventory. Some sellers are still adopting a wait-and-see attitude, hoping for prices to rise substantially," said Suzanne Yost, president of the Silicon Valley Association of REALTORS®

C.A.R. also reports that the share of equity sales in the state improved further in May, rising to 59.3 percent, compared with 55.8 percent in April. Equity sales made up 51 percent of all sales in May 2011.

The total share of all distressed property sales dropped to 40.7 percent in May, down from 44.2 percent in the previous month and from 49 percent in the previous year. The share of short sales declined in May to 19.4 percent, down from 20.6 percent in April and from 20.3 percent a year ago. The share of REO sales fell further in May to 21 percent, down from 23.2 percent in April and 28.4 percent in May 2011.

In Santa Clara County, single-family distressed home sales accounted for 28 percent of all home sales in May, down from 34 percent in May 2011, but up slightly up from 27 percent in April.


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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