California Pending Home Sales Rise in May on Monthly and Annual Basis

California pending home sales rose in May, posting the first year-over-year increase in 18 months, California Association of Realtors (C.A.R.) reported Tuesday.

C.A.R.’s Pending Home Sales Index (PHSI) was 118.3 in May, up 1.6 percent from April’s revised index of 116.4, based on contracts signed in May.  The index also was up 12 percent from May 2010.  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 was unchanged in May from April’s 48 percent, but up from 46 percent in May 2010.

Non-distressed sales made up the remaining share at 52 percent in May, unchanged from April but down from 54 percent in May 2010.

Of the distressed properties sold statewide, the total share of REO (real estate-owned) sales was 28 percent in May, unchanged from April, but up from 26 percent in May 2010.

At 19 percent, the statewide share of short sales also was unchanged in May, but down from 20 percent in May 2010.