Led by the SoCal region, California pending home sales rose 3.5% from 118.4 in July 2015 to 122.5 in July 2016, posting an increase from both the previous month and year, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported Tuesday. On a month-to-month basis, California pending home sales were up 3.0% from June's index of 119.0.
Despite the increase, the Realtor group said the housing market showed signs of cooling competition with fewer buyers overbidding on homes, according to its July Market Pulse Survey.
At the regional level, Southern California pulled up the market with a year-over-year increase in pending home sales, while the San Francisco Bay Area reversed its gain last month. Pending sales in the Central Valley were essentially flat.
Pending home sales in Southern California as a whole rose 1.6% from July 2015, thanks primarily to year-over-year pending sales increases of 7.8% in Orange County and 7.5% in San Diego County. Compared to June 2016, pending home sales were down 1.8%.
For the Bay Area as a whole, pending sales were down 3.5% from July 2015 and down 3.8% from June, despite year-to-year increases in pending sales in San Francisco (20.6 percent) and San Mateo (3.6%) counties. Low affordability and limited housing supply has been plaguing the region, however, an improvement in inventory in recent months should alleviate low housing stock in the upcoming months.
Pending sales in Central Valley were essentially flat, down just 0.1% from the previous year but up 1.9% on a month-to-month basis.