• While a drop in activity is expected, the month-to-month decline was larger than is historically normal.
  • Both San Francisco and Southern California saw month-to-month declines of roughly 14 percent.
  • Housing affordability and Realtors' concerns regarding inventory may indicate that more month-to-month declines are in store for California.

Pending home sales activity dipped in California during August, as did the number of listed homes that received multiple offers.

Both these findings indicate the state’s prime homebuying and homeselling season has passed.

According to the California Association of Realtors (CAR), pending home sales activity fell by 8.7 percent on a month-to-month basis.

The decrease was higher than the average July-August gain of 0.3 percent observed in the last seven years, a CAR release stated.

The performances of the San Francisco Bay Area and Southern California regions are the primary reason for the overall drop in sales volume.

Spanning July to August, pending sales fell by 14.1 percent in the Bay Area and by 13.7 percent in Southern California. Activity in the Central Valley also decreased, falling 5.7 percent.

Aug2015phsi2.001

A survey of roughly 300 Realtors showed that 58 percent of homes sold statewide in August received multiple offers, down from 67 percent in July and 61 percent in August 2014. Additionally, the average number of offers per property dipped in August to 2.4, down from 3.0 in July and 2.5 in August 2014.

Nearly half — 48 percent — of homes sold in August closed below asking price, with the average price 11 percent lower than asking.

On the flip side, 25 percent of homes sold above asking price, with the average premium paid dropping to 8.2 percent. In July, the average premium was 11 percent.

CAR notes that roughly 22 percent of Realtors cited low housing affordability as their biggest concern moving forward, with another 18 percent pointing to overinflated home prices. Inventory levels are of most concern to another 18 percent of Realtors.

While home sales activity dipped on a month-to-month basis, it also rose 12.8 percent on an annual basis. This marks the tenth straight month of year-to-year sales gains and the seventh straight month that’s seen double-digit gains.

 Pending sales activity in the Bay Area was up 1.1 percent, while Southern California activity rose by 14.7 percent. The Central Valley saw the largest year-to-year rise, 15.9 percent.

Email Erik Pisor

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Don’t miss out! Inman Connect Las Vegas is this week and you can catch all the excitement with a virtual ticket.Register Now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription