Talking Points …
- California’s pending home sales slowed down in November as seasonal factors kicked in and shrinking housing affordability remained an issue, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
- California pending home sales dropped in November, with the Pending Home Sales Index (PHSI)* falling 13.4 percent from a revised 104.8 in October to 90.7 in November, based on signed contracts. The monthly decline was on par with the average October-to-November monthly change of -13.1 percent observed in the last six years.
- Pending sales were down 1.2 percent from the revised 91.8 index recorded in November 2013. The yearly decrease was significantly lower than the six-month average of -5.8 percent from May 2014 to October 2014.
- The share of equity sales – or non-distressed property sales – dipped in November. Equity sales made up 90.5 percent of all sales in November, down from 91.1 percent recorded in October. Equity sales have been more than 80 percent of total sales since July 2013 and have risen to or above 90 percent for six straight months. Equity sales made up 86.5 percent of sales in November 2013.
- Conversely, the combined share of all distressed property sales edged up in November, up from 8.9 percent in October to 9.5 percent in November. Distressed sales were down nearly 36 percent from a year ago, when the share was 13.5 percent.