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CALIFORNIA PENDING HOME SALES LOSE STEAM FOR FOURTH STRAIGHT MONTH IN APRIL

Consistent with the slowdown in April’s closed escrow sales, which declined from the previous month and year, low housing inventory and eroding affordability suppressed pending home sales for the fourth straight month, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said.

C.A.R.’s April Market Pulse Survey** saw mixed results as REALTORS® reported an increase in floor calls for the fourth straight month, but less open house traffic, and no change in listing appointment activity compared with the previous month. Based on signed contracts, year-over-year statewide pending home sales declined for the fourth straight month in April on a seasonally adjusted basis, with the Pending Home Sales Index (PHSI)* declining 7.4 percent from 122.8 in April 2016 to 113.7 in April 2017. On a monthly basis, California pending home sales increased 5.9 percent from the March index of 107.4.

April’s year-over-year pending sales decline is the largest since July 2014, when sales decreased 9.1 percent from the previous year. The quickening pace of pending sales declines provides further evidence that the typically busy spring home buying season may underperform, primarily due to demand outstripping the supply of active listings, which was 10.5 percent lower than in April a year ago.

California Fast Facts

California median home price - April 2017: $536,750 (Source: C.A.R.)
California highest median home price - San Mateo $1,500,000 (Source: C.A.R.)
California lowest median home price - Lassen $175,500 (Source: C.A.R.)
Calif. Pending Home Sales Index: Statewide pending home sales decreased in April on a seasonally adjusted basis, with the Pending Home Sales Index (PHSI) declining 8.9 percent from 141.9 in April 2016 to 129.3 in April 2017.
Calif. Traditional Housing Affordability Index: First Quarter 2017: 32 percent

Mortgage rates: Week ending 5/18/2017 (Source: Freddie Mac) 30 year fixed: 3.95% fees/points: 0.5% 15-year fixed: 3.19% fees/points: 0.5% *Based on information from the California Association of REALTORS® and/or from MLS Listings, Inc. (MLS) for the period ending 5/31/17. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS.