The California Association of REALTORS® released its first Pending Home Sales Index and key distressed property data this week. The report shows a rise in pending sales and in the total share of distressed properties sold statewide in the month of January.
C.A.R.'s Pending Home Sales Index was 93.6 in January, rising 13.6 percent from December's index of 82.4, based on contracts signed in January. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market. A sale is listed as pending after a seller has accepted a sales contract on a property, and usually becomes a closed sales transaction one to two months later.
"Pending sales typically rise in January from a seasonally slow November and December," said C.A.R. President Beth L. Peerce. "January's pending sales should be reflected in higher existing sales activity in February and March and serve as a precursor to the spring home buying season."
C.A.R.'s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state. Information from MLSListings Inc., the multiple listing service of the Silicon Valley Association of REALTORS® revealed there were 2,146 pending sales or sales under contract in January, down from 2,224 in December 2010 and 2,394 in January 2010.
"While home prices in the county have dropped slightly from the same time last year, agents report they are busier than usual and many are optimistic about the market's prospects in 2011," said Silicon Valley Association of REALTORS® President Gene Lentz. "Silicon Valley region's housing market has never suffered the dramatic spikes and drops that have occurred in many areas across the state."
C.A.R.'s distressed housing market data reveals the total share of all distressed property types sold statewide in January was 54 percent, up from 50 percent in December, but down from 56 percent in January 2010. Conventional sales made up the remaining share at 46 percent in January, down from 50 percent in December, but up from 44 percent in January 2010. The total share of distressed properties varied per county/region from a high of 81 percent in Solano County to 33 percent in the San Diego region.
Of the distressed properties sold statewide, the total share of REO (real estate-owned) sales was 32 percent in January, up from 30 percent in December, but was down from 37 percent in January 2010. The statewide share of short sales increased to 22 percent in January, up from 20 percent in December and up from 19 percent in January 2010.
The median price of homes sold in the state differed dramatically depending on the property type, with non-distressed properties selling for much higher prices than short sales and foreclosures. The statewide median price of conventional properties sold in January was $367,150, 38 percent higher than the short sale median price of $265,500 recorded in January, and 85 percent higher than the January REO median price of $198,000.
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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