Markets & EconomyMLS & Associations

California pending home sales take a timeout January

Slowing pending homes touched all corners of the state
  • The California Association of Realtors report on January's market conditions revealed a slowdown in pending homes.
  • The year-over-year slowing was statewide, whereas month-over-month figures were better.
  • The Market Pulse Survey showed that Realtors are still confident in the market.

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It was probably inevitable. For the first time since August 2014, statewide pending home sales in California decreased in January on a year-over-year basis. Los Angeles County was off 5 percent. The San Francisco Bay Area was off 4.7 percent. The only year-over-year gains were seen in Monterey and San Francisco counties. A shortage of homes on the market and affordability pressures, coupled with the distraction of volatile financial markets are the primary reasons, said the California Association of Realtors (CAR). To expand its monthly picture, CAR has now begun including pending sales in select California counties, with more to be added in the future. Statewide pending home sales fell in January on an annual basis, with the Pending Home Sales Index falling 2.9 percent from 98.5 in January 2015 to 95.6 in January 2016. That statistic is based on signed contracts. Pending sales also were lower on a year-over-year basis in all areas when measured by region. But ...