California Pending Home Sales, Distressed Sales Rise in February

Pending home sales rose in February, as did the share of distressed properties sold, the California Association of Realtor’s  (C.A.R.) reported Monday.

C.A.R.’s Pending Home Sales Index (PHSI) was 112.1 in February, rising 20.6 percent from January’s revised index of 93.0, based on contracts signed in February.  The index was down 1.6 percent from February 2010, when the presence of housing tax credits played a strong role in home sales.  Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

The total share of all distressed property types sold statewide also increased in February, to 56 percent, up from 54 percent in January and up from 55 percent in February 2010.  Non-distressed sales made up the remaining share at 44 percent in February, down from 46 percent in January and down from 45 percent in February 2010.