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For release:
September 22, 2015

California pending home sales temper in August but still record 10th straight annual increase

LOS ANGELES (Sept. 22) – California pending home sales declined in August but remained strong, marking 10 straight months of year-over-year gains, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

In a separate report, California REALTORS® responding to C.A.R.’s August Market Pulse Survey saw a drop in sales with multiple offers compared with July, as market competition cooled down toward the end of the home-buying season. The Market Pulse Survey is a monthly online survey of more than 300 California REALTORS®, which measures data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.

Pending home sales data:

• The Pending Home Sales Index (PHSI)* rose 12.8 percent on an annual basis to 112.8 in August, based on signed contracts. The August 2015 index was up from the 100 index recorded a year ago and marked the 10th straight month of year-to-year gains and the seventh straight month of double-digit advances.

• On a monthly basis, statewide pending home sales in August fell 8.7 percent on a month-to-month basis. The PHSI was down from the 123.6 index in July. The month-to-month decrease was higher than the average July-August gain of 0.3 percent observed in the last seven years.

• At the regional level, pending sales were higher on a year-over-year basis in the San Francisco Bay Area, Southern California, and Central Valley, but were lower on a monthly basis.

• San Francisco Bay Area pending sales fell 14.1 percent from July to an index of 119.7, but were up 1.1 percent from August 2014.

• Pending home sales in Southern California dropped 13.7 percent from July to reach an index of 94.3 in August but were up 14.7 percent from a year ago.

• Central Valley pending sales were lower in August, decreasing 5.7 percent from July to reach an index of 96.7 in August but were up 15.9 percent from August 2014.

Equity and distressed housing market data:

• The share of equity sales – or non-distressed property sales – edged up from August to post its highest level since the fall of 2007. Equity sales made up 93.8 percent of all home sales in August, up from 93.3 percent in July and 91.6 percent in August 2014.

• Conversely, the combined share of all distressed property sales (REOs and short sales) fell in August to 6.2 percent of total sales, down from 6.7 percent in July and 8.5 percent a year ago.

• Twenty-five of the 44 counties that C.A.R. reports showed month-to-month decreases in their share of distressed sales, with Santa Cruz having the smallest share of distressed sales at 0.6 percent, followed by Marin (1.1 percent), and San Mateo (1.5 percent). Tehama County had the highest share of distressed sales at 16.7 percent, followed by San Benito (14.3 percent) and both Lake and Kings tied at 13.4 percent.

August REALTOR® Market Pulse Survey**:

• The share of sales closing below asking price increased in August to 48 percent. More than one-fourth of homes (27 percent) closed above asking price, and 25 percent closed at asking price.

• For the one in four homes that sold above asking price, the premium paid over asking price decreased to an average of 8.2 percent, down from 11 percent in July and down from 8.4 percent in August 2014.

• The 48 percent of homes that sold below asking price sold for an average of 11 percent below asking price in August, up from 9.6 percent in July.

• The share of properties receiving multiple offers decreased in August to 58 percent, down from 67 percent in July and 61 percent in August 2014.

• The average number of offers per property dipped to 2.4 from 3.0 in July and 2.5 in August 2014.

• REALTOR® respondents reported that floor calls, listing appointments, and open house traffic all declined in August.

• When asked what REALTORS®’ biggest concerns are, more than one in five (22 percent) indicated low housing affordability, 18 percent said overinflated home prices, and another 18 percent are concerned with a shortage of available homes for sale.

Graphics (click links to open):

• Pending home sales by region.
• Transactions closing at or above asking price.
• Premium paid over asking price.
• REALTORS®’ biggest concerns.

*Note: C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state. Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market. A sale is listed as pending after a seller has accepted a sales contract on a property. The majority of pending home sales usually becomes closed sales transactions one to two months later. The year 2008 was used as the benchmark for the Pending Homes Sales Index. An index of 100 is equal to the average level of contract activity during 2008.

**C.A.R.’s Market Pulse Survey is a monthly online survey of more than 300 California REALTORS® to measure data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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WASHINGTON (September 21, 2015) — Following three straight months of gains, existing–home sales dipped in August despite slowing price growth and a positive turnaround in the share of sales to first–time buyers, according to the National Association of Realtors®. None of the four major regions experienced sales increases in August.

Total existing–home sales¹, which are completed transactions that include single–family… Read More

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For release:
September 15, 2015

California home sales cool in August as price gains temper, C.A.R. reports

– Existing, single-family home sales totaled 431,800 in August on a seasonally adjusted annualized rate, down 3.8 percent from July but up 9.3 percent from August 2014.

– Statewide sales were above the 400,000 mark for the fifth straight month.

– August statewide median home price was $493,420, up 1 percent from July and 2.5 percent from August 2014.

– Sales of condos and townhomes were up nearly 10 percent from last year, and are ahead 6.6 percent year to date.

LOS ANGELES (Sept. 15) – Following a hotter than usual summer of homes sales, California’s housing market cooled in August, but still posted higher year over year for the seventh straight month, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

Home sales remained above the 400,000 mark in August for the fifth consecutive month and rose to the highest level since October 2012. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 431,800 units in August, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide sales figure represents what would be the total number of homes sold during 2015 if sales maintained the August pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The August figure was down 3.8 percent from the revised 448,900 level in July but up 9.3 percent compared with home sales in August 2014 of a revised 395,080. The year-to-year change was higher than the 6-month average increase of 8.6 percent observed from February 2015 to July 2015.

"Home prices are finally increasing at a healthier pace, and the smallest year-over-year statewide median price gain in nearly three and a half years suggests that home prices are stabilizing," said C.A.R. President Chris Kutzkey. "Supply constraints in the Bay Area will continue to fuel appreciation for the rest of the year, but the upward pressure in price will be counterbalanced by sales increases in more affordable areas such as the Central Valley and the Inland Empire."

The median price of an existing, single-family detached California home edged up 1 percent in August to $493,420 from a revised $488,470 in July. August’s median price was 2.5 percent higher than the revised $481,240 recorded in August 2014. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

"While California housing indicators remain strong for now, the anticipation of higher mortgage rates and reduced affordability, coupled with global instability and stock market volatility may create an environment of uncertainty that could impact the current momentum in the market," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "We’re on track to post stronger than expected home sales for 2015, with the last quarter moderating but still solid. Strong sales in the Central Valley and Inland Empire markets should help to propel statewide sales higher, thanks to better affordability and greater housing supply, while sales soften in the Bay Area."

Other key points from C.A.R.’s August 2015 resale housing report include:

• While sales continued to improve from last year at the state level, the number of active listings continued to drop from the previous year. Active listings for California decreased 1.4 percent from July and dropped 6.2 percent from August 2014.

• The August Unsold Inventory Index ticked up to 3.6 months from July’s 3.3 months but was down from 4 months in August 2014. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered typical in a normal market.

• The median number of days it took to sell a single-family home edged up in August to 29.9 days compared with a revised 29.3 days in July but was down from a revised 33.9 days in August 2014.

• According to C.A.R.’s newest housing market indicator which measures the sales-to-list price ratio*, properties are again generally selling below the list price, except in the San Francisco Bay Area, where a lack of homes for sale is pushing sales prices higher than original asking prices. The statewide measure suggests that homes are selling at a median of 98.8 percent of the list price, up slightly from 98.3 percent at the same time last year. The Bay Area is the only region where homes are selling above original list prices due to constrained supply with a ratio of 103.4 percent, up from 104 percent in July and 101.5 percent a year ago.

• The average price per square foot** for an existing single-family home was $238 in August 2015, down from $241 in July and unchanged from $238 in August 2014. Price per square foot at the state level has been on an upward trend since early 2012, and has been rising on a year-over-year basis for 43 consecutive months. In recent months, however, the growth rate in price per square foot has slowed down to an average of 2.2 percent in the last three months, as home prices started leveling off. In the month of August, there was virtually no growth on a year-over-year basis.

• San Francisco had the highest price per square foot in August with $770/sq. ft., followed by San Mateo ($764/sq. ft), and Santa Clara ($592/sq. ft.). The three counties with the lowest price per square foot in August were Siskiyou ($112/sq. ft.), Merced ($115/sq. ft.), and Kings ($116/sq. ft.).

• Mortgage rates dipped in August, with the 30-year, fixed-mortgage interest rate averaging 3.91 percent, down from 4.05 percent in July and 4.12 percent in August 2014, according to Freddie Mac. Adjustable-mortgage interest rates, however, ticked up in August, averaging 2.60 percent, up from 2.52 in July and 2.37 percent in August 2014.

Graphics (click links to open):

• August sales at-a-glance infographic.
• Change in sales by price range.
• Share of sales by price range.
• Sales to active listings ratio.
• Sales to list ratio.
• Price per square foot.

Note: The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state, and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower-end or the upper-end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 38 counties.

Leading the way?® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

August 2015 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

r = revised

August 2015 County Unsold Inventory and Time on Market
(Regional and condo sales data not seasonally adjusted)

r = revised

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