Although month-to-month pending home sales in California declined slightly, August marks 10 straight months of year-to-year gains according to the California Association of Realtors (CAR). However, realtors in the state have responded to the latest Market Pulse Survey from CAR by saying that sales on homes with multiple offers were down, which is a telltale sign of reduced competition among buyers.
The Market Pulse Survey is a monthly poll of more than 300 realtors in California that measures sales data and industry sentiment. Some of the data pertinent to pending home sales from the August survey is as follows:
• The pending home sales index (PHSI) hit 112.8, an increase of 12.8 percent over last year.
• Month-to-month, pending home sales declined by 8.7 percent.
• Pending sales were highest in San Francisco Bay, Central Valley and Southern California with index figures at 119.7, 96.7 and 94.3, respectively.
Other data from the survey relates to equity, the distressed housing market and general sales:
• Non-distressed property comprised 93.8 percent of August sales, the highest level since 2007.
• Month-to-month decreases in distressed sales were reported in 25 of 44 counties.
• Forty-eight percent of sales closed below asking price, 25 percent closed at asking price and 27 percent closed above asking price.
• Of the sales closing below asking price, the average drop in price was 11 percent.
• The number of properties with multiple offers decreased from 67 percent in July to 58 percent in August.
• The average number of offers per property dropped from three in July to 2.4 in August.
