The latest REALTOR® report indicates California pending home sales continued to gain steam in June, with seven months of continued annual increases and the fifth consecutive month of double-digit increases. REALTOR® officials expect home sales to remain strong in the upcoming quarter.
According to the latest California Association of REALTORS® pending home sales report, statewide pending home sales were up 12.5 percent on an annual basis from the 107 index in June 2014, marking the seventh straight month of year-to-year gains and the fifth straight month of double-digit advances. Statewide pending home sales were down in June on a month-to-month basis, with the Pending Home Sales Index (PHSI) decreasing 2.6 percent, from 123.6 in May to 120.4, based on signed contracts.
The C.A.R. report indicates June pending home sales in Southern California rose 4 percent from May, but the shortage of available homes in the San Francisco Bay Area stifled the region's pending sales in June, pushing the PHSI to 127.9, down 5.3 percent from 135.1 in May and down 0.9 percent from the 129.1 index recorded in June 2014.
"Home sales in our region have been strong this summer, rising 9 percent in June in Santa Clara County and 10 percent in San Mateo County from May, according to our MLS. The lack of homes for sale in the Bay Area, however, is pushing sales prices higher than original asking prices, making it challenging for the average buyer," said Chris Isaacson, president of the Silicon Valley Association of REALTORS®.
C.A.R. vice president and chief economist Leslie Appleton-Young relayed the same concerns upon release of the statewide June sales and price market report. "Overall, market fundamentals appear strong, and should provide some support for the market to stay above last year's level in the upcoming quarter. Housing supply, however, is one variable that remains a concern and could have an adverse effect on the market if the inventory constraints do not improve," said Appleton-Young.
According to C.A.R.'s sales-to-list price ratio, the Bay Area is the only region where homes are selling above original list prices due to constrained supply with a ratio of 106.3 percent, up from 104 percent a year ago, but down from 107.3 percent in May. The average price per square foot for an existing single-family home was $226 in June 2015. San Francisco County had the highest price per square foot in June at $790/sq. ft., followed by San Mateo County at $755/sq. ft., and Santa Clara County at $596/sq. ft. The three counties with the lowest price per square foot in June were Siskiyou ($106/sq. ft.), Madera ($114/sq. ft.), and Kings ($118/sq. ft.).
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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