Despite robust closed escrow sales in June, California pending home sales slipped for the sixth consecutive month, suggesting an impending slowdown in the state’s housing market as the peak home buying season winds down, the Arcadia Association of REALTORS® said today.
With increasing concerns over shrinking housing inventory and suppressed housing affordability, REALTORS® remained cautious in June. REALTORS® reported fewer floor calls and listing appointments but higher open house traffic than in May.
Pending Home Sales Data:
- Based on signed contracts, year-over-year statewide pending home sales fell for the sixth straight month in June on a seasonally adjusted basis, with the Pending Home Sales Index (PHSI) declining 0.9 percent from 119.0 in June 2016 to 117.9 in June 2017. California pending home sales also slipped on a monthly basis, decreasing 0.6 percent from the May index of 118.7.
- Pending home sales have declined every month so far this year, however, the pace of decline has slowed in recent months. But with additional headwinds of housing inventory that declined further last month as closed sales rose, and a double-digit drop in active listings, the state’s housing market could be negatively impacted in the coming months.
- Pending sales in the Southern California Region continued their upward trend in June and posted a 2.5 percent improvement from the previous year, as San Bernardino County and Orange County saw healthy bumps of 10.3 percent and 8.3 percent, respectively. Pending sales in San Diego (-3.6 percent), Riverside (-6.9 percent), and Los Angeles (-1.7 percent) counties declined from last June.