Share of Equity Sales Expand, C.A.R. Reports
LOS ANGELES (BUSINESS WIRE) Seasonal factors sent California pending home sales lower in November, while equity home sales continued their upward trend, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
Pending home sales data:
C.A.R.’s Pending Home Sales Index (PHSI)* fell 14.4 percent from a revised 121 in October to 103.5 in November, based on signed contracts. Pending sales were down 0.9 percent from the 104.4 index recorded in November 2011. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
Distressed housing market data:
- The share of equity sales – or non-distressed property sales – compared with total sales rose in November. The share of equity sales in November increased to 64.9 percent, up from 63.4 percent in October, the highest level since May 2008, when the share was 66.5 percent. Equity sales made up about half (50.2 percent) of all sales in November 2011.
- The combined share of all distressed property sales dropped to 35.1 percent in November, down from 36.6 percent in October and down from 49.8 percent in November 2011.
- Of the distressed properties, the share of short sales was 23.4 percent in November, down from 24.4 percent in October but up slightly from 23 percent a year ago.
- The share of REO sales dipped from 11.8 percent in October to 11.3 percent in November and was down from 26 percent in November 2011.
- The available supply of REOs eased slightly in November, with the Unsold Inventory Index for REOs inching up from 1.9 months in October to 2.1 months in November. The November Unsold Inventory Index for both short sales and equity sales was 3.1 months.
- Pending sales compared with closed sales.
- Historical trend in the share of equity sales compared with distressed sales.
- Closed housing sales in November by sales type (equity, distressed).
- Housing supply of REOs, short sales, and equity sales in November.
- A historical trend of REO, short sale, and equity sales housing supply.
- Year to year change in sales by property type.
**Note: C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state. Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market. A sale is listed as pending after a seller has accepted a sales contract on a property. The majority of pending home sales usually becomes closed sales transactions one to two months later. The year 2008 was used as the benchmark for the Pending Homes Sales Index. An index of 100 is equal to the average level of contract activity during 2008.
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 155,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
CALIFORNIA ASSOCIATION OF REALTORS