The California housing market appears to be picking up, based on the latest pending home sales data released by the California Association of REALTORS® (C.A.R.) on Wednesday. Though still down from a year ago, January's pending sales reversed a two-month decline.
C.A.R.'s Pending Home Sales Index (PHSI) jumped 22.9 percent in January to reach 84.8, up from a revised index of 68.9 in December, based on signed contracts. The PHSI was down 17.5 percent from the revised 102.8 index recorded in January 2013. Pending home sales are provide information on the future direction of the market.
"We're starting to see a turning point in the market as we approach the spring home buying season. Home sellers realize that home prices are holding steady and are gearing up for the upcoming season by listing their homes for sale, while prospective home buyers are getting more comfortable with stabilizing home prices and interest rates and are entering the market," said C.A.R. President Kevin Brown.
After reaching a recent high in November, the share of equity sales was essentially unchanged in January, dipping slightly to 84.4 percent from 84.5 percent in December. Equity sales made up 64.2 percent of sales in January 2013 and still marked the seventh straight month that non-distressed sales have been more than 80 percent of total sales.
C.A.R. reports the share of distressed property sales edged up from 15.5 percent in December to 15.6 percent in January, but still down by more than a half from a year ago, when the share was 35.8 percent. About half of the 37 reported counties showed a month-to-month decrease in the share of distressed sales, with San Diego County having the smallest share at 4 percent.
In Santa Clara County, distressed shares accounted for 8 percent of total sales in January, up from 7 percent in December 2013. They made up 24 percent of total home sales a year ago in January 2013. The change was about the same for San Mateo County, where distressed sales accounted for 7 percent of total sales in January, up from 6 percent in December 2013. They made up 19 percent of total sales in January 2013.
"The housing market has recovered well and quickly from even a year ago, where we had three times the number of distressed sales. This is good news for many homeowners who, not too long ago, found themselves underwater," said David Tonna, president of the Silicon Valley Association of REALTORS®.
Tonna added that inventory has slightly edged upward in many areas of the region. "We feel confidence, more sellers will gain confidence in the market as we move into spring. Inventory is still tight too, because some sellers who want to sell have no place to move too."
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.
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