DataMarkets & Economy

California pending sales jump in July, but market optimism slumps

Yearly and monthly jump in pending home sales largely attributed to SoCal markets, while Bay Area pending sales softened
  • Pending Home Sales Index (PHSI) rose 3.5 percent between July 2015 and July 2016.
  • The south end of the state stole the show, with a 1.6 percent annual jump in pending sales.
  • Respondents of CAR’s July survey said listing appointments, along with calls and open house attendance, has slowed given the time of year.

Although buyer competition is softening across major California markets, statewide pending sales data reveals heightened activity in Southern California. On a seasonally adjusted annualized basis, the California Association of Realtors Pending Home Sales Index (PHSI) rose 3.5 percent between July 2015 and July 2016. The PHSI, which sat at 118.4 last year, reached 122.5 last month based on signed contracts. Month-over-month, California pending sales rose 3 percent from June, when the index was 119. An index of 100 is equal to the average number of signed contracts in 2008, according to CAR. July pending home sales / CAR Southern California stole the show, with a 1.6 percent annual jump in pending sales, while the Bay Area market posted a 3.5 percent drop in the same category. In the Central Valley, pending sales were virtually flat, CAR says. Looking closer, Santa Clara County saw the biggest yearly drop, at 9.3 percent. San Francisco County, on the other hand, saw a 20...