Talking Points …
- According to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), California pending home sales dropped in August, with the Pending Home Sales Index (PHSI) falling 5 percent in August to 108.3, down from 114 in July, based on signed contracts. Pending sales were down 8.9 percent from the 118.9 index recorded in August 2012.
- The share of equity sales – or non-distressed property sales – has risen on a month-to-month basis for 18 of the last 19 months and now makes up more than four in five sales, the highest share since November 2007. The share of equity sales in August increased to 84.7 percent, up from 82.9 percent in July, according to C.A.R. market data.
- C.A.R. also reported that housing inventory levels improved further in August but remained in short supply. The Unsold Inventory Index for equity sales inched up from 3 months in July to 3.1 months in August. The supply of REOs edged up from 2.1 months in July to 2.3 months in August, and the supply of short sales rose from 2.5 months in July to 2.9 months in August.