Decline in REOs blamed for sagging California home sales

CAR: Distressed properties accounted for 42 percent of pending deals in June

The California Association of Realtors says inventory shortages dented pending home sales in June, as lenders signed off on more short sales but had fewer "real estate owned" properties, or REOs, to market.

CAR’s Pending Home Sales Index was down 3.8 percent from May to June, but at 121.4 was up 4.7 percent from a year ago. An index of 100 is equal to the average level of contract activity during 2008.