May pending and distressed sales

California pending home sales rise on annual basis, post double-digit year-over-year gains in last nine of 10 months

C.A.R.’s Pending Home Sales Index (PHSI)* was unchanged in May from a revised 128.8 in April, based on signed contracts. The index was up from the 115.8 index recorded in May 2011. May marked the thirteenth straight month that pending sales were higher than the previous year. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

• The share of equity sales – or non-distressed property sales – compared with total sales improved further in May. The share of equity sales rose to 59.3 percent in May, up from 55.8 percent in April. Equity sales made up 51 percent of all sales in May 2011.

• Likewise, shares of REOs and short sales sold statewide decreased in May, with the share of REO sales dropping the most markedly from a year ago. The combined share of all distressed property sales fell to 40.7 percent in May, down from April’s 44.2 percent and from 49 percent in May 2011.

Share of Distressed Sales to Total Sales
(Single-family)

Type of Sale	May 2011	April 2012	May 2012
Equity Sales	51.0%	55.8%	59.3%
Total Distressed Sales	49.0%	44.2%	40.7%
REOs	28.4%	23.2%	21.0%
Short Sales	20.3%	20.6%	19.4%
Other Distressed Sales (Not Specified)	0.3%	0.4%	0.3%
All Sales	100.0%	100.0%	100.0%

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