Takeaways:
- California pending home sales rose 17 percent year over year in July.
- Month over month, pending sales activity rose by 1.6 percent.
- Nondistressed property sales accounted for 93 percent of all home sales in July.
On an annual basis, California pending home sales rose by 17 percent in July.
When comparing July to June, pending sales activity also rose, by 1.6 percent, according to the California Association of Realtors’ (CAR) Home Sales Index, which reached 122.3 in July.
Nondistressed property sales accounted for 93 percent of all home sales in July, with distressed sales representing the remaining 7 percent.
The association reports that 22 of the 43 counties analyzed showed month-to-month declines in their share of distressed sales. San Francisco has the smallest share of distressed sales at 1 percent.
On a regional level, pending sales have risen noticeably on a year-over-year basis in California’s three largest regions.
In the San Francisco Bay Area, the home sales index stood at 129.6 in July, up 9.2 percent from July 2014. On a month-over-month basis, the index rose by 1.3 percent.
Pending home sales in Southern California are up 16.8 percent from a year ago but were essentially flat from June to July, dipping 0.3 percent.
Central Valley pending sales rose in July by 20.7 percent compared to the same time last year. On a month-over-month basis, the index increased by 3.1 percent.
A separate CAR survey of more than 300 Realtors shows that 34 percent of homes closed above asking price in July, with 24 percent closing at asking price. Those that sold above asking price, on average, closed at an 11 percent premium.
Also of note, the share of properties receiving multiple offers rose to 67 percent in July.
Realtors’ biggest concern moving forward is the lack of inventory, with 26 percent of respondents citing this issue.
