California Pending Home Sales Up In August But Down From A Year Ago

California Pending Home Sales Up In August But Down From A Year Ago

California Pending Home Sales Up In August But Down From A Year Ago

Equity Sales Reach Highest Level In Four Years

Continuing the upward bound trend of real estate news, California Association of Realtors (C.A.R.) reported that California pending home sales climbed in August from July, but the continuing shortage of housing inventory caused pending sales to shoot down compared from the previous year.  Additionally, the lack of inventory, particularly bank owned properties, sent the share of equity sales to its highest level in four years.

For a closer look we see that C.A.R.’s Pending Home Sales Index (PHSI) rose 2.7 percent from a revised 115.8 in July to 118.9 in August. Pending sales sank 2 percent from those recorded in August 2011. Pending sales offer a forward-looking indicator of future home sales.

• The share of equity sales – or non-distressed property sales – compared with total sales shot up to its largest level in four years.  The share of equity sales in August increased to 62.2 percent, up from 59.5 percent in July.  In comparison, equity sales made up 51.7 percent of all sales in August 2011.

Although equity sales rose, don’t think that the distressed housing market will vanish anytime soon.

• The share of REO sales statewide shrank further in August, while the short sales shale crept up slightly.  The combined share of all distressed property sales fell to 37.8 percent in August, down from 40.5 percent in July and down from 48.3 percent in August 2011.

Short Sale Shares Still On The Rise

Looking at the distressed market here in California –

• Of the distressed properties, the share of short sales edged up to 23 percent in August from 22.6 percent in July and from 20.2 percent a year ago.

• In August, the share of REO sales shrank to nearly half in comparison to a year ago to 14.4 percent, down from 17.4 percent in July and 27.8 percent in August 2011.

• REOs for sale remained in tight supply in August, with the Unsold Inventory Index standing at a 1.6-month supply in August 2012.  The August Unsold Inventory Index for short sales marked 3.7 months and stood at 3.3 months for equity sales.

California Pending Home Sales Up In August But Down From A Year Ago

California Pending Home Sales Up In August But Down From A Year Ago

California Pending Home Sales Up In August But Down From A Year Ago

California Pending Home Sales Up In August But Down From A Year Ago

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Filed under California, Foreclosure, short sales

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