Pending home sales in California rose in October for the second consecutive month. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market. The rise in October ending home sales is a sign that closed sales could pick up for the remainder of the year, according to the California Association of REALTORS® (C.A.R.).
C.A.R.'s Pending Home Sales Index rose 2 percent from a revised 102.6 in September to 104.6 in October, based on signed contracts. Pending sales dipped 0.5 percent from the revised 105.2 index recorded in October 2013.
"Price gains have slowed and if interest rates remain at the current low levels, we could see overall home sales improve for the rest of the year," said David Tonna, president of the Silicon Valley Association of REALTORS® (SILVAR).
Pending sales of single-family homes picked up steam in Silicon Valley housing markets. According to information from MLSListings Inc., in Santa Clara County there were 1,080 single-family home sales under contract in October, up from 1,040 in September 2014. There were 1,231 single-family home sales under contract in October 2013. In San Mateo County, there were 470 single-family home sales under contract in October, a slight increase from 467 in the previous month, and down from 509 in October 2013.
Meanwhile,the share of equity sales continued to edge up in October. Equity sales made up 91.1 percent of all sales in October, up from 90.9 percent recorded in September. Equity sales have comprised more than 80 percent of total sales since July 2013 and have risen to or above 90 percent for five straight months. Equity sales made up 85.5 percent of sales in October 2013.
Conversely, the combined share of all distressed property sales dipped in October, down from 9.1 percent in September to 8.9 percent in October. Distressed sales were down nearly 40 percent from a year ago, when the share was 14.5 percent.
Half of the 41 reporting counties experienced a month-to-month decrease in the share of distressed sales. Seventeen counties recorded single digits. Alameda, Contra Costa, Marin, Napa, Orange, San Diego, San Mateo, Santa Clara, and Santa Cruz, Sonoma, and Yolo counties registered a share of five percent or less.
Distressed sales in Santa Clara County made up a mere 2 percent of total sales in October, down from 3 percent in September and from 4 percent in October last year. In San Mateo County, distressed sales comprised just 1 percent of total sales in October, compared with a share of 3 percent in September 2014 and in October last year.
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 email or call the SILVAR office at (408) 200-0100.