A softening of the hot California real estate market is on the cards following a second straight month of stalled activity
A softening of the hot California real estate market is on the cards following a second straight month of stalled activity.
The California Association of Realtors says that its Pending Home Sales Index was down 3.5% in August compared to a year earlier and down 2% compared to July.
The largest drop in pending sales was in the San Francisco Bay Area (11.6% year-over-year) while Southern California saw a 3.8% drop with only Orange and San Bernardino counties showing a year-over-year rise.
Home sales are continuing to outstrip new listings and CAR expects home prices statewide to remain strong as a result.
The association’s survey of Realtors shows that 31% of homes sold above asking price in August (up from 29% a year earlier) while the share selling for below asking fell to 37% (from 41%). Those selling above asking average a 12% premium.
Multiple offers were seen for around two thirds of homes in August.
Realtors say that low inventory remains their top concern followed by affordability/high interest rates and inflated home prices/bubble.
Expectation for the next 12 months was positive for 56% of real estate agents, up from 51% a year earlier.
The California Association of Realtors says that its Pending Home Sales Index was down 3.5% in August compared to a year earlier and down 2% compared to July.
The largest drop in pending sales was in the San Francisco Bay Area (11.6% year-over-year) while Southern California saw a 3.8% drop with only Orange and San Bernardino counties showing a year-over-year rise.
Home sales are continuing to outstrip new listings and CAR expects home prices statewide to remain strong as a result.
The association’s survey of Realtors shows that 31% of homes sold above asking price in August (up from 29% a year earlier) while the share selling for below asking fell to 37% (from 41%). Those selling above asking average a 12% premium.
Multiple offers were seen for around two thirds of homes in August.
Realtors say that low inventory remains their top concern followed by affordability/high interest rates and inflated home prices/bubble.
Expectation for the next 12 months was positive for 56% of real estate agents, up from 51% a year earlier.
