California Pending Home Sales Post Monthly and Annual Gains in October; Share of Equity Sales Continues to Expand

pan>)--California pending home sales rose both from the previous month and year
in October for the first time in seven months, while the share of equity
sales grew slightly, marking a four-year high, the CALIFORNIA
ASSOCIATION OF REALTORS (C.A.R.) reported today.
“The strong pace of pending sales in October is a continuation of what
weve experienced for most of 2012, with demand remaining robust across
all parts of the state”
Pending home sales data:
C.A.R.s Pending Home Sales Index (PHSI)*rose 4.3 percent from a
revised 115.2 in September to 120.2 in October, based on signed
contracts. Pending sales were up 3.6 percent from the 116.1 index
recorded in October 2011. Pending home sales are forward-looking
indicators of future home sales activity, providing information on the
future direction of the market.
The strong pace of pending sales in October is a continuation of what
weve experienced for most of 2012, with demand remaining robust across
all parts of the state, said 2013 C.A.R. President Don Faught.
Non-distressed sales which are up nearly 50 percent from a year ago
are especially strong, while REO sales are down more than 51 percent,
primarily due to a short supply of REOs. The significant increase in
non-distressed sales has driven the share of equity sales to its highest
level in more than four years.
Distressed housing market data:
The share of equity sales or non-distressed property sales
compared with total sales expanded slightly in October. The share of
equity sales in October increased to 63.4 percent, up from 63 percent
in September, the highest level since June 2008. Equity sales made up
about half (49 percent) of all sales in October 2011.
The share of REO sales statewide contracted in October, while the
share of short sales essentially was unchanged. The combined share of
all distressed property sales dipped to 36.6 percent in October, down
from 37 percent in September and down from 51 percent in October 2011.
Of the distressed properties, the share of short sales was 24.4
percent in October and 22.6 percent a year ago.
The share of REO sales fell further in October, dropping from 12.3
percent in September to 11.8 percent in October and was down from 28
percent in October 2011.
The available supply of REOs tightened in October, with the Unsold
Inventory Index for REOs falling from 2.2 months in September to 1.9
months in October. The Unsold Inventory Index for short sales was 3.1
months and was 3.2 months for equity sales.
Charts:
Closed
housing sales in October by sales type (equity, distressed).
Pending
sales compared with closed sales.
Historical
trend in the share of equity sales compared with distressed sales.
Housing
supply of REOs, short sales, and equity sales in October.
A
historical trend of REO, short sale, and equity sales housing
supply.
Year
to year change in sales by property type.

Share of Distressed Sales to Total Sales
(Single-family)

Type of Sale

Oct.
2011

Sept.
2012

Oct.
2012
Equity Sales

49.0%

63.0%

63.4%
Total Distressed Sales

51.0%

37.0%

36.6%
REOs

28.0%

12.3%

11.8%
Short Sales

22.6%

24.3%

24.4%
Other Distressed Sales (Not Specified)

0.4%

0.4%

0.4%
All Sales

100.0%

100.0%

100.0%

Single-family Distressed Home Sales by Select Counties
(Percent of total sales)

County

Oct.
2011

Sept.
2012

Oct.
2012
Alameda

NA

28%

21%
Amador

46%

38%

38%
Butte

43%

36%

35%
Contra Costa

NA

29%

26%
El Dorado

48%

38%

36%
Fresno

61%

51%

48%
Humboldt

28%

28%

20%
Kern

67%

45%

41%
Kings

NA

39%

42%
Lake

78%

47%

50%
Los Angeles

48%

37%

37%
Madera

89%

60%

55%
Marin

26%

24%

21%
Mendocino

49%

47%

43%
Merced

58%

46%

47%
Monterey

61%

40%

45%
Napa

46%

37%

30%
Orange

36%

25%

28%
Placer

58%

43%

40%
Riverside

63%

50%

50%
Sacramento

64%

50%

47%
San Benito

72%

55%

58%
San Bernardino

65%

45%

46%
San Diego

28%

15%

14%
San Joaquin

63%

52%

49%
San Luis Obispo

46%

28%

29%
San Mateo

23%

20%

17%
Santa Clara

34%

22%

22%
Santa Cruz

40%

31%

28%
Siskiyou

37%

40%

32%
Solano

72%

59%

62%
Sonoma

51%

37%

29%
South Lake Tahoe

31%

33%

25%
Stanislaus

67%

57%

55%
Tehama

49%

49%

43%
Tulare

NA

NA

46%
Yolo

61%

51%

45%
California

51%

37%

37%
**Note: C.A.R.s pending sales information is generated from a survey of
more than 70 associations of REALTORS and MLSs throughout
the state. Pending home sales are forward-looking indicators of future
home sales activity, offering solid information on future changes in the
direction of the market. A sale is listed as pending after a seller has
accepted a sales contract on a property. The majority of pending home
sales usually becomes closed sales transactions one to two months later.
The year 2008 was used as the benchmark for the Pending Homes Sales
Index. An index of 100 is equal to the average level of contract
activity during 2008.
Leading the way... in California real estate for more than
100 years, the CALIFORNIA ASSOCIATION OF REALTORS (www.car.org)
is one of the largest state trade organizations in the United States
with 155,000 members dedicated to the advancement of professionalism in
real estate. C.A.R. is headquartered in Los Angeles.

Information Source: Business Wire

November 23rd, 2012 @ 05:33pm