Low inventory and weakened affordability stifled California’s pending home sales in July
Low inventory and weakened affordability stifled California’s pending home sales in July.
Members of the California Association of Realtors reported fewer floor calls and listing appointments and less open traffic in July compared to the previous month.
The association’s Pending Home Sales Index dropped 2.6% year-over-year and pending home sales on a monthly basis declined for the first time since March (0.9%).
Pending home sales have been lower on an annual basis in six of the past seven months this year although that pace of decline has started to slow.
Bucking the trend was the Southern California region with an increase in pending sales from the previous year. Los Angeles, San Bernardino County and Orange County gained 4%,6% and 4.6% respectively.
Conversely, the largest drop in pending sales in July was the San Francisco Bay Area, down 11.5% on an annual basis. San Francisco and San Mateo County were down 11% and 21.4% respectively.
CAR’s Realtor Market Pulse Survey showed that 35% of homes sold above asking price in July while 36% sold below asking price. The premium paid for those above asking price was 9%.
Around two thirds of properties received multiple offers, 40% of those received three or more offers.
Lack of inventory remained the top concern for Realtors (30%) followed by declining affordability/high interest rates (28%) and inflated housing prices/ housing bubble (25%).
Members of the California Association of Realtors reported fewer floor calls and listing appointments and less open traffic in July compared to the previous month.
The association’s Pending Home Sales Index dropped 2.6% year-over-year and pending home sales on a monthly basis declined for the first time since March (0.9%).
Pending home sales have been lower on an annual basis in six of the past seven months this year although that pace of decline has started to slow.
Bucking the trend was the Southern California region with an increase in pending sales from the previous year. Los Angeles, San Bernardino County and Orange County gained 4%,6% and 4.6% respectively.
Conversely, the largest drop in pending sales in July was the San Francisco Bay Area, down 11.5% on an annual basis. San Francisco and San Mateo County were down 11% and 21.4% respectively.
CAR’s Realtor Market Pulse Survey showed that 35% of homes sold above asking price in July while 36% sold below asking price. The premium paid for those above asking price was 9%.
Around two thirds of properties received multiple offers, 40% of those received three or more offers.
Lack of inventory remained the top concern for Realtors (30%) followed by declining affordability/high interest rates (28%) and inflated housing prices/ housing bubble (25%).
