California Pending Home Sales Dip in November

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According to the California Association of Realtors (C.A.R.), pending home sales in California fell in November but were up from the previous year for the seventh consecutive month.  Additionally, distressed home sales dropped in November from both the previous month and year.

California pending home sales fell 9.1 percent in November but were up from a year ago, according to C.A.R.'s Pending Home Sales Index (PHSI).  The index was 109.8 in November, based on contracts signed in that month, down from October's index of a revised 120.9.  However, the index was up 11 percent from November 2010, marking the seventh consecutive month that pending sales rose from the previous year.  Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

"The strong year-over-year growth in pending sales observed in the last several months suggests we should see an increase in December's closed sales over the same month last year," said C.A.R. President LeFrancis Arnold.

Distressed housing market data:

• At 55.1 percent, equity sales made up more than half of home sales in November, up from 53.9 percent in October and 54.4 percent in November 2010.

• The total share of all distressed property types sold statewide fell to 44.9 percent in November, down from October's 46.1 percent and 45.6 percent in November 2010.

• Of the distressed properties sold statewide in November, 21 percent were short sales, up slightly from the previous month's share of 20.7 percent and up from last November's share of 19 percent.

• At 23.5 percent, the share of REO sales was down from October's 24.9 percent, and down from the 26.2 percent reported in November 2010.