California pending home sales post monthly, annual gains in October

California pending home sales rose both from the previous month and year in October for the first time in seven months, while the share of equity sales grew slightly, marking a four-year high, California Association of Realtors, (C.A.R.) recently reported.
C.A.R.’s Pending Home Sales Index (PHSI) rose 4.3 percent from a revised 115.2 in September to 120.2 in October, based on signed contracts. Pending sales were up 3.6 percent from the 116.1 index recorded in October 2011. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
“The strong pace of pending sales in October is a continuation of what we’ve experienced for most of 2012, with demand remaining robust across all parts of the state,” said 2013 C.A.R. President Don Faught. “Non-distressed sales – which are up nearly 50 percent from a year ago – are especially strong, while REO sales are down more than 51 percent, primarily due to a short supply of REOs. The significant increase in non-distressed sales has driven the share of equity sales to its highest level in more than four years.”