Following relatively strong closed escrow home sales over the past few months, California pending home sales slipped from a year ago, according to the California Association of Realtors. Meanwhile, Realtors responding to the state Realtor group's January Market Pulse Survey saw more activity in floor calls, listing appointments, and open house traffic from December.
The California Association of Realtors reports statewide pending home sales decreased in January with the Pending Home Sales Index slipping 0.2 percent from 107.4 from January 2016 to 107.2 in January 2017. On a monthly basis, statewide pending home sales were down 9.2 percent from the December index of 118. Only the Southern California region posted a year-over-year gain in pending sales in January, rising 8.1 percent from January 2016 and increasing 10.5 percent on a monthly basis.
In the San Francisco Bay Area, pending sales fell 9.7 percent compared to January 2016. San Mateo County posted an annual increase, rising 5.3 percent from January 2016 after posting a significant double-digit annual decline (35.3 percent) in December. Pending home sales decreased 21.2 percent in San Francisco County, 7.1 percent in Santa Clara County, 24.9 percent in Monterey, and 4.8 percent in Santa Cruz County.
"Tight housing inventory and low affordability are contributing to lower sales in the region and these factors are likely to impact home sales throughout the year," said Denise Welsh, president of the Silicon Valley Association of Realtors.
Welsh explained the dip in pending sales does not mean interest in homes has waned. "The increase in activity that the Realtor Market Pulse survey indicated reflects a seasonal pattern as we move into spring," said Welsh. "Homes in the area are still receiving multiple offers. Realtors continue to be pretty busy taking listings and showing homes that are for sale. We are getting more inquiries from both buyers and sellers who are considering selling their home."
California Realtors responding to the market survey reported the share of homes selling above asking price rose from 17 percent a year ago to 25 percent in January. Conversely, the share of properties selling below asking price decreased to 38 percent from 47 percent in January 2016. The remaining 36 percent sold at asking price, unchanged from January 2016.
About two-thirds of properties for sale (62 percent) received multiple offers in January, down from 66 percent in January 2016. The share of properties receiving three or more offers in January was 32 percent, compared to 34 percent a year ago.
Rising for the fifth straight month, a lack of available inventory was the top concern for 36 percent of Realtors. Eroding housing affordability/high interest rates concerned 29 percent of Realtors. Inflated home prices/housing bubble was cited by 14 percent of Realtors.
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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