Pending home sales in California posted the strongest annual gains in more than six years, according to new data from the California Association of Realtors.
The CAR Pending Home Sales Index rose 17% year over year in July to 122.3, up from 104.5% in July of 2014. This July marked the eighth straight month of year-to-year gains and the sixth consecutive month of double-digit gains, according to CAR. Pending home sales in California also saw a 1.6% month-over-month increase, reversing a three-month decline.
On a regional level, pending home sales in San Francisco were up 9.2% year over year to an index of 129.6. Pending sales in Southern California were essentially flat month over month, but rose 16.8% on an annual basis. Pending sales in California’s Central Valley region rose 3.1% month over month and 20.7% annually.
The share of equity sales – non-distressed property sales – also spiked, reaching its highest level since late 2007, according to CAR. Equity sales made up 93% of all home sales in July, up nearly three percentage points from a year ago. Meanwhile, the share of distressed property sales fell to 7.6% from last year’s 9.8%.
More than a third of California home sales – 34% – closed above asking price in July, while 24% closed at asking price and 43% closed below. The share of properties receiving multiple offers rose to 67%, up a percentage point from last July.
California pending home sales spiked 17% over the previous year in July, according to new data from the California Association of Realtors