BAY AREA PENDING HOME SALES DOWN FOR SIXTH STRAIGHT MONTH
Two familiar culprits — tight inventory conditions and eroding affordability — caused March pending homes sales to slide yet again in California and the Bay Area.
That’s according to the California Association of Realtors’ latest Pending Home Sales Index, which says that pending sales decreased statewide by 4.5 percent year over year in March, the third consecutive month of declines. March’s drop in pending sales was the largest thus far in 2017, a possible indicator that the spring homebuying season may be slower than usual despite a busy start.
Across the nine-county Bay Area, which has the state’s most severe inventory shortages, pending home sales were down for the sixth straight month, declining by 10.1 percent from March 2016. All nine counties saw substantial annual pending sales declines, with San Francisco and Santa Clara experiencing drops of about 15 percent.
Low inventory continues to be top of mind for California real estate professionals, with 37 percent of respondents to CAR’s monthly Market Pulse Survey citing it as a chief concern. Thirty-four percent of those polled are concerned with worsening affordability and rising interest rates, while 17 percent pointed to overinflated home prices and a possible bubble.