Equity Sales in California Hit Five-Year High

The share of equity sales rose to their highest level in five years in March, while California pending home sales climbed from the previous month, C.A.R. reported this week.

C.A.R.’s Pending Home Sales Index (PHSI) rose 14.8 percent from a revised 110.1 in February to 126.3 in March, based on signed contracts.  Pending sales were down 7.5 percent from the 136.5 index recorded in March 2012.  Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

The share of equity sales – or non-distressed property sales – compared with total sales rose to their highest level since February 2008, recording a 72.1 percent share in March.  Equity sales made up 66.8 percent of all sales in February and about half (51.2 percent) of all sales in March 2012.

Housing inventory fell in all three property types in March, with the Unsold Inventory Index for short sales falling from a revised 3.2 months in February to 2.7 months in March and REOs slipping from 2 months in February to 1.8 months in March.  The index for equity sales declined from 3.8 months in February to 3 months in March.

Carylee Stone

Distinctive Properties

858-344-2632

carylee@stonehometeam.com