California pending home sales fell 1.7% in July, according to the California Association of Realtor's Pending Home Sales Index (PHSI), which dropped to 117.0 from 119.0 in June. The index remained up 4.9% from July 2010.

"While pending home sales dipped in July, all indications show we should continue at the current level for the next couple of months," said Beth L. Peerce, C.A.R. president. "Pending sales have been ahead of last year's level for the past three consecutive months and should be on track to finish the year even with last year's pace."

C.A.R. also reported the total share of all distressed property types sold statewide fell to 44.5% in July from 46.9% in June and from 47.7% in July of last year. Of the distressed properties sold statewide, 17.5% were short sales, a decline from 19.3% in June and 20.9% a year earlier. REOs came in at 26.7%, down from 27.3% in June and up from 26.3% reported in July 2010.