Pending home sales get comp traction in California

Source: Orange County (Calif.) Register

A new trend might be in the making, a Realtor pending home sales index shows.

For the past four consecutive months, the number of housing deals inked by buyers and sellers has gone up across the state from year-ago levels.

Before we get too excided, though, it’s important to recall that pending sales — new, but not-completed home sales — are rising from dismally low numbers a year ago that followed the end of federal homebuying tax credits.

According to the latest CAR report:

Pending deals — or the signing of a purchase agreement — increased 12.6% in August from the year before.
Pending deals also were up 7% from July levels.
The index rose to its second-highest level since April 2010.
August’s index level was the third-highest in the past 22 months.
By comparison, Orange County pending deals increased 10.6% in August from year-ago levels to 3,049 contracts signed, according to a separate report by broker Steve Thomas.
Last month’s pending deals in O.C. were up 0.2% from July levels.
Not all of those purchases are likely to end in a closed sale since many deals fall apart during the escrow period. But pending deals are indications of future closed sales down the road.


URL to original article: http://www.builderonline.com/builder-pulse/pending-home-sales-get-comp-traction-in-california.aspx?cid=BP:092711:JUMP

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