California pending home sales in July posted the eighth straight month of annual gains, soaring from July last year. The July pending home sales also reversed a three-month decline, rising 1.6 percent on a month-to-month basis, according to the latest state REALTOR® report, which tracks data that can help point to the future direction of the market.
The California Association of REALTORS® reports the statewide Pending Home Sales Index climbed 17 percent on an annual basis to 122.3 in July, based on signed contracts. The July 2015 index was up from 104.5 recorded a year ago and marked the eighth straight month of year-to-year gains and the sixth straight month of double-digit advances. July's pending home sales rose 1.6 percent on a month-to-month basis from 120.4 in June.
In the San Francisco Bay Area, the July pending sales index of 129.6 was up 1.3 percent from June and up 9.2 percent from July 2015, a solid indication of future sales growth. "Pending home sales are forward-looking indicators of future home sales activity. The state's July data shows a still very active housing market, posting the strongest year-over-year increase in more than six years. REALTORS® continue to report homes still receiving multiple offers and closing above asking price," said Chris Isaacson, president of the Silicon Valley Association of REALTORS®.
Presenting data at a recent REALTOR® meeting, Mark Wong, chair of the local trade association's Global Business Council, said "Silicon Valley's housing market continues to be unbelievable." He noted especially in the first half of 2015, many properties received multiple offers.
According to Wong, in February one San Jose property received a record 58 offers, 20 of which were cash offers. Between January and June 2015, 87 properties in Cupertino and 89 properties in Sunnyvale sold at least $250,000 over the asking price.
A July survey of California REALTORS® indicates more than a third (34 percent) of homes closed above asking price, and 24 percent closed at asking price. For the one in three homes that sold above asking price, the premium paid over asking price remained at an average of 11 percent, unchanged from June but up from 11 percent in July 2014. The 43 percent of homes that sold below asking price sold for an average of 9.6 percent below asking price in July, down from 11 percent in May.
The share of properties receiving multiple offers in July rose 67 percent, up from 65 percent in June and 66 percent in July 2014. The average number of offers per property increased slightly to 3.0 from 2.9 in June and 2.7 in July 2014.
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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