For the first time since August 2014, pending home sales in California dropped in January on a year-over-year basis, according to the California Association of Realtors and reported by Brena Swanson of HousingWire.

Statewide pending home sales tumbled in January on an annual basis, with the pending home sales index decreasing 2.9% from 98.5 in January 2015 to 95.6 in January 2016, based on signed contracts, CAR reported.

On a monthly basis, CAR said California pending home sales rose from December, primarily due to seasonal factors, with the PHSI increasing 21.1% from an index of 79 in December to 95.6 in January.

The state’s housing market has a shortage of homes for sale and low housing affordability, each contributing to the dip in pending home sales.

Read more >