California pending home sales in April registered their fifth straight annual gain, with the last three months being in the double-digits. The information from the California Association of REALTORS® (C.A.R.) suggests a strong start for the spring/summer home-buying season.
C.A.R. reports statewide pending home sales were up 13.6 percent on an annual basis from the 114 Pending home Sales Index (PHSI) recorded in April 2014. California's pending home sales dipped slightly in April, with the index decreasing 0.6 percent from a revised 130.2 in March to 129.4, based on signed contracts.
The April index marked the fifth consecutive month of year-to-year gains and the third straight month of double-digit advances, signs that California housing market is continuing its upward trend, according to the report. Pending home sales in the San Francisco Bay Area, Southern California, and Central Valley regions posted back-to-back, double-digit, year-over-year gains.
San Francisco Bay Area's PHSI stood at 136.6 in April, down 6.8 percent from 146.6 in March, but up 12 percent from the 122 index recorded in April 2014.
"Pending home sales are forward-looking indicators of future home sales activity that can give us an indication on future changes in the direction of the market. The information from the California Association of Realtors strongly suggests we are in for a busy buying and selling season in our region," said Chris Isaacson, president of the Silicon Valley Association of REALTORS®.
California REALTORS® responding to C.A.R.'s April Market Pulse Survey saw more floor calls and all cash purchases compared to March. The majority (55 percent) of Realtors expect better market conditions over the next year.
According to survey, 36 percent of transactions closed above asking price in April, while 41 percent closed below asking price, and 23 percent closed at asking price. Homes that sold above asking price sold for 10 percent above asking price, up from 7.7 percent in March and up from 8.7 percent in April 2014. Homes that sold below asking price sold for an average of 11 percent below asking price.
The share of properties receiving multiple offers increased for the fourth straight month. Seventy-two percent of properties received multiple offers in April, up from 62 percent in March and up from 71 percent a year ago. The average number of offers on a property was 3.6, up from 2.7 in March and up from 2.9 a year ago.
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.