July 19, 2024

The National Association of Realtors reported today that seasonally adjusted index of pending sales contracts fell 7.7 percent to 80.4 in January.

The index, which started in 2001, tracks signed contracts to buy previously owned homes. Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future home sales.

Here in the West, due to bank foreclosures, the index was up more than 2 percent from December. Some think the foreclosure sales are way below the real home market values. However, as sales activity shows, it would seem to indicate that the market place is working, and the foreclosure sales ARE the true  home market values!  Just ask anyone trying to sell a home in San Diego that is not a foreclosure or short sale!

San Diego downtown real estate

 

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Existing Home Sales & Values Drop in January

 

 

2 thoughts on “January Pending Home Sales Fall to Record Low – But, Up in West

  1. Given the ratio to income to sales price in California the foreclosure crisis will be a California problem for many years. Until the recent bubble lending 3 times income was a good yardstick but now it ranges from 6 to 10 times income and this has become the norm. A good example would be the city of Santa Rosa BMR problem that has a cap of 50K income for houses costing 304K using the FHA 3% down program. Low income cannot afford a 300K home; only in California is this type of thinking keep alive by local and state government. In fact the State yesterday wants to give low income families 100% financing for foreclosure homes in the most impacted parts of the state. These homes require extensive rehab which low income citizens do not have and will again provide a new wave of foreclosures in the coming years.

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