Pending home sales up
June 21, 2011
Pending home sales in California rose in May, marking the first year-over-year increase in a year and a half, according to the California Association of Realtors (CAR).
The association’s pending home sales index was 118.3 in May, up 1.6 percent from April and up 12 percent from the year prior. CAR says May saw the largest year-over-year increase since August 2009.
A sale is listed as pending after a seller has accepted a sales contract on a property. Most pending home sales usually become closed sales transactions within two months, according to the association.
The index is an indicator of future home sales and may be telling of the direction of the housing market.
“May’s increase in pending sales is consistent with our expectation that home sales in the second half of 2011 should be higher compared with the second half of 2010, and as a result, annual sales for all of 2011 should match or exceed last year’s annual pace,” said CAR President Beth L. Peerce in a statement.