We have demand – the pending-home index is rising! From C.A.R.:
http://www.car.org/newsstand/newsreleases/2015releases/dec2014pending
Pending home sales posted higher on a year-over-year basis for the first time since January 2013 and as expected, declined from the previous month due primarily to a seasonal slowdown toward the end of the year, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.
Additionally, with the specter of a better economy, greater job growth, and increasing household formation, C.A.R.’s new Market Pulse Survey found that many REALTORS® expect market conditions to improve in 2015, as does C.A.R.
• In the fourth quarter of 2014, the vast majority (87 percent) of REALTORS® expected market conditions to either improve or stay the same over the next year.
• More REALTORS® (61 percent) closed a transaction in the fourth quarter of 2014, compared to the first quarter (53 percent).
• In an indication of stabilizing home prices, fewer homes (24 percent) sold above asking price in the fourth quarter of 2014, compared to 46 percent in the first quarter.
• Homes selling below asking price rose from 19 percent in the first quarter of 2014 to 48 percent in the fourth quarter, indicating home sellers’ expectations moved more in line with buyers’ expectations toward the end of the year and competition between sellers attempting to appeal to affordability-strapped home buyers increased.
• More than half (58 percent) of properties received multiple offers in the fourth quarter of 2014, down from 69 percent in the first quarter.
Im curious how they define multiple offers? Is it a bidding war or simply the seller did not take the first offer they got?
Im curious how they define multiple offers as this could mean a lot or nothing? Do the mean a bidding war or the seller simply did not take the first offer they got?
Jim,
Is the CAR really a unbiased source? The data sounds like a positive trend line preparing to turn negative.
Are there any sources that are unbiased? I don’t know if it was even a positive trend – it could be a one-month blip. I put this up just so people see that nearly half of realtors don’t sell one house per quarter!
I think the CAR publications just tow the company line, and are always couched with qualifiers so they never stick their neck out too far.
Everybody plays it safe – realtor associations, economists, industry players, and realtors themselves. Nobody wants to take a stand about what is really happening, let alone be a leader and step up to the microphone to be heard.
Hi Jim, thanks for the stats. Any idea what percentage of those transactions were “all cash” buyers? And is that up or down from the prior year?
No, but that’s a stat that gets bandied about regularly so next time I see it I’ll make a note. I think it’s running around 30%.
The ivory-tower types like to label those ‘investor’ purchases, but there isn’t a requirement to finance your purchase to live there.