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REALTOR®: California pending home sales climb, but lack of inventory remains a problem

Wednesday, March 28, 2012

Pending home sales in California gained ground for the second consecutive month in February, the California Association of REALTORS® (C.A.R.) reported this week. Low inventory continues to be a problem in most places, according to REALTORS®.

C.A.R.'s Pending Home Sales Index rose from a revised 102.3 in January to 127.8 in February, based on signed contracts. The index also was up from the 111.8 in February 2011, marking the 10th consecutive month that pending sales were higher than the previous year. 

In Santa Clara County, the number of home sales under contract was higher in February, but down from a year ago. According to MLSListings Inc., the multiple listing service of the Silicon Valley Association of REALTORS®, there were 2,328 single-family home sales under contract last month, up from 2,056 in January, but down from 2,357 in February 2011. San Mateo County, on the other hand, posted gains from the previous month and year. In February, San Mateo County had 859 home sales under contract, up from 681 in January and 711 in the previous year.

Inventory continues to be a big problem around the state, according to Rick Turley, president of Coldwell Banker Residential Brokerage for the San Francisco Bay Area. "We have a dearth of listings everywhere. Inventory is the lowest it's been in 4-5 years in every county," Turley told members of the Silicon Valley Association of REALTORS® at a meeting in Menlo Park this week.

Turley told REALTORS® the market is heating up, but hampered by very low inventory, which have resulted in numerous multiple offers. Many places have a mere three months supply of inventory. Turley described a healthy market as having at least four to six months supply of inventory.

Turley said San Francisco has a mere three months supply of inventory and prices there have increased every month for the past five months. He indicated in the North Bay the market has improved, especially in Marin County. In the East Bay, it is still a mixed bag, with stronger sales in Contra Costa and Alameda counties. In the South Bay, Turley said it is quite evident the market has picked up, especially in Palo Alto, where many homes are receiving multiple offers. Turley said in San Jose, inventory of condos is down 70 percent from last year.

The lack of inventory has much to do with confusion among consumers, said Turley. He called on REALTORS® to educate the public and have one-on-one conversations with clients. It is a good time to buy a home, but it is also a good time to sell a home. With the low inventory and growing demand, Turley noted, "sellers have an advantage not just in price, but in terms that can be favorable to them."

                                                                           


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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