When compared to many other housing markets nationwide, California has seen significant improvements in many factors including homes sales and prices. A new report from the California Association of Realtors revealed that more prospective buyers purchased homes for sale in Los Angeles County and surrounding areas in January.
According to the Pending Home Sales Index for the first month of the year, the index increased 23 percent to a mark of 101.4. This is up from 82.4 posted in December and when compared to January last year, pending transactions rose 1.4 percent. CAR noted this as the highest month-over-month gain since March 2009.
Despite a low inventory of existing homes for sale, more consumers are placing an emphasis on homeownership. Data from the report showed the housing inventory was still low in January, with the Unsold Inventory Index gaining just slightly from 2.4 months to 3.1 months.
“The strong increase in January’s pending home sales is an encouraging indication that we’ll kick off the spring home buying season on a solid start,” said Don Faught, president of CAR. “However, a low supply of available homes for sale will affect buyers, especially first-time buyers looking for more affordable, lower-priced homes since they are having to compete with investors and all-cash buyers.”
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed
“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”