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REALTOR®: California's pending home sales fall from a year ago due to lack of inventory

Wednesday, September 26, 2012

The California Association of REALTORS® announced on Monday that August pending home sales in California were up from July, but due to low inventory, statewide pending sales were down from August 2011. Strong demand for homes and the lack of housing supply, especially REOs, brought the share of equity sales to its highest level in four years.

C.A.R.'s Pending Home Sales Index rose 2.7 percent from 115.8 in July to 118.9 in August, based on signed contracts. Pending sales were 2 percent below the 121.4 index recorded in August 2011.

"The pending sales decline from last year is not a surprise, as we started to see a gradual slowdown in the year-to-year change over the past five months, primarily due to a dearth of available homes," explained C.A.R. president LeFrancis Arnold.

Suzanne Yost, president of the Silicon Valley Association of REALTORS®, said the lack of inventory continues to impact sales in the region. "In August, MLSListings Inc. reported Santa Clara and San Mateo counties experienced a 39 percent drop in inventory from the same time last year. The lack of housing supply is certainly impacting sales," said Yost.

According to local data from MLSListings Inc., there were a total of 2,116 single-family home sales under contract in Santa Clara County in August. That number was down from 2,156 in the previous month and 2,400 in August 2011. San Mateo County had a total of 793 single-family home sales under contract in August, down from 820 in July and 834 in August last year.

"The low inventory has created a difficult market for buyers. There is pent-up demand from the last three to four years and many sellers aren't yet willing to put their home on the market," said Yost. "With low interest rates and fairly stable prices, buyers should continue to make offers and not get discouraged."

According to C.A.R.'s distressed housing market data, the statewide share of equity sales compared with total sales grew to its largest level in four years. The share of equity sales in August was 62.2 percent, up from 59.5 percent in July and 51.7 percent in August 2011. The combined share of all distressed property sales fell to 37.8 percent in August, down from 40.5 percent in July and 48.3 percent in August 2011. The share of short sales edged up to 23 percent in August from 22.6 percent in July and 20.2 percent a year ago. The share of REO sales fell to 14.4 percent in August, down from 17.4 percent in July and 27.8 percent in August 2011.

The share of distressed sales in Santa Clara County continues to contract. Distressed sales in Santa Clara County accounted for 21 percent share of total August single-family home sales, down from 23 percent in the previous month and 31 percent in August 2011.

In San Mateo County, distressed sales accounted for 15 percent of all August single-family home sales, unchanged from the previous month. In August 2011, the share of distressed sales was 25 percent.


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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