The California Association of REALTORS® reports pending home sales in California fell in September, but were up from the previous year for the fifth consecutive month. Additionally, distressed home sales increased slightly in September from both the previous month and year.
Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market. Pending home sales in the state fell 5.2 percent in September, but saw an increase from a year ago, according to C.A.R.'s Pending Home Sales Index (PHSI). The index was 118.5 in September, based on contracts signed in that month, down from the August index of 125. The index was up 8.4 percent from September 2010. September marked the fifth consecutive month that pending sales rose from the previous year.
"While recent pending home sales have increased from last year's levels, housing inventory remains lean across all property types, particularly REOs (real estate-owned), which currently is at a 2.6-month supply," said C.A.R. president Beth L. Peerce. "However, some major lenders recently announced they would accelerate the release of REOs onto the market, which should help alleviate the current shortage of housing inventory."
According to information from MLSListings Inc., the multiple listing service of the Silicon Valley Association of REALTORS®, in the month of September, Santa Clara County had 2,434 sales under contract, down slightly from 2,400 the previous month and 2,509 in September 2010. San Mateo County had 827 sales under contract, down from 834 in August, but up from 781 in the previous year.
C.A.R. reports the total share of all distressed property types sold statewide rose to 44.4 percent in September, up from 43.7 percent in August and 43.6 percent in September 2010. Of the distressed properties sold statewide in September, 20.2 percent were short sales, up from the previous month's share of 18.9 percent and last September's share of 19.5 percent. At 24 percent, the share of REO sales was down slightly from 24.4 percent in August, but up from the 23.8 percent reported in September 2010. Equity sales made up the remaining share of home sales in September at 55.6 percent, down from 56.3 percent in August and 56.4 percent in September 2010.
Santa Clara County fares better than most other counties in the state. The total share of all distressed property types sold in Santa Clara County in September was 35 percent, up one percent from the previous year and up 4 percent from the previous month. In San Mateo County, distressed sales made up 26 percent of the total share of property sold in September, up from 20 percent the previous year and 25 percent in the previous month. Statewide, the counties of Solano and San Benito had the highest percentage of distressed sales as a total share of all properties sold in September, both at 73 percent. Humboldt County had the smallest share at 19 percent, followed by San Diego, 25 percent and San Mateo County, 26 percent.
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.