California pending home sales dwindled for the third consecutive month, suggesting that the housing market will slow as the end of the year winds down, the Arcadia Association of Realtors said today.
Entering the fall home-buying season, the housing market momentum waned as Realtors reported slower open house traffic and listing appointments. Client presentations also fell below positive territory in September.
Based on signed contracts, year-over-year statewide pending home sales dropped in September on a seasonally adjusted basis, with the Pending Home Sales Index (PHSI) declining 6 percent from 127.7 in September 2016 to 120 in September 2017. California pending home sales increased on a monthly basis, rising 2.5 percent from the August index of 117.0.
Pending home sales have declined on an annual basis for eight of the last nine months so far this year. After a solid run-up of closed sales in May, June, and August, continued housing inventory issues and affordability constraints may have pushed the market to a tipping point, suggesting the pace of growth will begin to slow in the fall.
Pending home sales were down 7.1 percent from the previous year in Southern California. Los Angeles, Riverside, and San Diego counties registered lower annual pending sales of 8 percent, 13.4 percent, and 11.5 percent, respectively. Orange County experienced its first year-to-year pending sales decrease (2.8 percent) in six months, and San Bernardino County posted its first annual decline (11.6 percent) in four months.