Home Sales Decrease as Affordability Declines

LOS ANGELES, CA - Statewide pending home sales in California decreased in January on a year-over-year basis for the first time since August 2014 as a shortage of homes for sale and low housing affordability persisted and volatile financial markets distracted buyers, the California Association of Realtors said today.

Statewide pending home sales fell in January on an annual basis, with the Pending Home Sales Index decreasing 2.9 percent from 98.5 in January 2015 to 95.6 in January 2016, based on signed contracts, CAR said in a statement.

On a monthly basis, California pending home sales rose from December, primarily due to seasonal factors. The Pending Home Sales Index increased 21.1 percent from an index of 79 in December to 95.6 in January.

At the regional level, pending sales also were lower on a year-over-year basis in all areas. However, all regions experienced double-digit, month-to-month increases in pending sales, CAR said.

Pending home sales in Southern California increased 10 percent from December to reach an index of 75.9 in January, up from December’s index of 69 and down 4.1 percent from an index of 79.1 a year ago.

San Francisco Bay Area pending sales rose 13.9 percent from December to reach an index of 106.5 in January, up from December’s 93.5 index and down 4.7 percent from January 2015’s 111.8 index.

Central Valley pending sales rose from December to reach an index of 72.7, up 11.9 percent from December’s 65 index and down 1.1 percent from January 2015’s 73.5 index.

City News Service; Photo: Shutterstock