State’s Pending Home Sales Trend Higher

Exerpts from California Association Of Realtors® (C.A.R.) release dated January 24, 2017:
“Led by the Southern California region, California pending home sales registered gains on a month-to-month and year-to-year basis in December, portending a moderate increase in sales in the near term.
The modest sales growth is unlikely to be sustained, however, given the severe shortage of homes for sale and affordability concerns.
Pending home sales data:
• Based on signed contracts, statewide pending home sales increased in December on a seasonally adjusted basis, even with new mortgage rules that pushed sales higher December a year ago.
• Southern California saw the largest increase in pending sales last month, rising 7.8 percent on an annual basis and decreasing 16.1 percent on a monthly basis. Orange County was the only area within Southern California that saw pending sales lower on an annual basis by 11.5 percent.
• On the flip side, in the San Francisco Bay Area as a whole, tight housing supplies and low affordability contributed to a fall in pending sales of 14.2 percent compared to December 2015 and 32.5 percent from November. The significant year-over-year sales decline in the Bay Area can be attributed to the prevalence of higher-priced properties in the region that were affected by new mortgage lending rules implemented in fall 2015.
• Overall pending sales in the Central Valley improved 0.9 percent from December 2015 and were down 18.4 percent from November.
• While rents in most large metro areas will continue to increase next year, they’ll grow at just 1.7 percent next year, according to Zillow’s rent forecast.”

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