- Diminished housing affordability continued to hold back pending home sales for the fifth straight month in August as rising home prices contributed to a further reduction in the share of distressed home sales, according to the CALIFORNIA ASSOCIATION OF REALTORS®.
- California pending home sales fell in August, with the Pending Home Sales Index (PHSI) dropping 4.5 percent from 104.5 in July to 99.8 in August, based on signed contracts. The month-to-month drop was inconsistent with the seasonal trend, which typically shows a slight increase from July to August.
- Pending sales were down 8.7 percent from the 109.3 index recorded in August 2013. The year-over-year decrease was in line with the six-month average of -8.9 percent recorded between February 2014 and July 2014. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
