California pending home sales bounce back in October, C.A.R. reports
Source: C.A.R.
Pending home sales bounced back from the previous month at the statewide level in October, according to
the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Pending sales were also significantly
higher on an annual basis, portending higher closed escrows in the next couple of months.
Making sense of the story

Statewide pending home sales increased in October, with the Pending Home Sales Index (PHSI)
rising 2.5 percent from a revised 110.7 in September to 113.4 in October, based on signed
contracts. The month-to-month gain was better than the average increase of 0.9 percent from
September to October observed in the last seven years.

On an annual basis, statewide pending home sales were up 13.9 percent from the revised 99.5
index recorded in October 2014. Pending sales have been increasing on a year-over-year basis
since November 2014 and have seen double-digit increases for nine straight months.

At the regional level, pending sales were higher on a year-over-year basis in all areas, with
Southern California and Central Valley both increasing at a double-digit rate compared to last
October.

The share of equity sales – or non-distressed property sales – dipped in October but remained at
the highest levels since the fall of 2007. Equity sales now make up 93.7 percent of all sales, up
from 91.5 percent a year ago.

The combined share of all distressed property sales (REOs and short sales) edged up in October
to 6.3 percent of total sales, but was down from 8.5 percent a year ago.

More than one in four homes (27 percent) closed above asking price in October, and nearly half
(47 percent) closed below asking price. One-fourth (25 percent) closed at asking price.

About two-thirds (64 percent) of properties received multiple offers in October, indicating the
market remains competitive. Fifty-one percent of properties received multiple offers in October
2014.
Read the full story
http://www.car.org/newsstand/newsreleases/2015releases/oct2015pendingsales
In other news …
More Young Adults Live With Their Parents Now Than During the
Recession
Source: Wall St. Journal
The share of 18-to-34-year-olds living with their parents was 31.5 percent as of March 2015, up from 31.4
percent last year, according to a report from the Commerce Department. In 2005, just 27 percent of young
adults lived with their parents, a number that has climbed pretty steadily since then. New household
formation from young Americans is important for driving demand in the housing market. But the fact that
the percentage at home has barely moved from last year is particularly notable because many economists
expected young people to start moving out as the economy has improved and unemployment among
young people has dropped significantly.
Read the full story
http://blogs.wsj.com/economics/2015/11/23/more-young-adults-live-with-their-parents-now-than-duringthe-recession/
US home sales slump in Oct. as higher prices weigh on buyers
Source: AP
Rising home values may be pushing more would-be buyers to the sidelines, as fewer Americans bought
homes in October. Sales of existing homes fell 3.4 percent last month to a seasonally adjusted annual rate
of 5.36 million. While buyers have fewer choices because the number of listings on the market has
dropped 4.5 percent, home purchases still have advanced 3.9 percent from a year ago. This is partly due to
steady job gains and low mortgage rates. Tight inventories are curbing enthusiasm among some home
buyers. Just 4.8 months' supply of homes is available, well below the 6 months associated with a balanced
market.
Read the full story
http://finance.yahoo.com/news/us-home-sales-slump-oct-150500406.html
Why the Housing Rebound Hasn’t Lifted the U.S. Economy Much
Source: Wall St. Journal
Home equity has roughly doubled to $12.1 trillion since house prices hit bottom in 2011, but this
expanding housing wealth is playing a much smaller role in the overall economy than it did before the
downturn. While the traditional ways Americans tap their home equity—home-equity loans, lines of
credit, and cash-out refinances—are higher than last year, they are still depressed. Home equity’s effect
on consumer spending is at its lowest ebb since the early 1990s, according to Moody’s Analytics.
Consumers are possibly more conservative than they used to be and mortgage lenders also aren’t giving
owners access to as much equity as they used to.
Read the full story
http://www.wsj.com/articles/why-the-housing-rebound-hasnt-lifted-the-u-s-economy-much-1448221840
When Is Housing's Black Friday?
Source: Realtor.com
Does the housing market really come to a screeching halt during the holidays? Realtor.com® did some
digging into its data and online traffic to determine the true Black Friday of the housing business. Here’s
a holiday shocker: Dec. 28 was actually one of the busiest days for real estate searches in the entire year,
despite the fact that Dec. 24 was the single slowest. Another best-performing day also falls on a holiday
weekend: the other side of the year, July 6. Instead of traveling, many buyers apparently use the long
weekend in the height of the buying season to search for homes and go to open houses. As for the
Thanksgiving slowdown, it’s pretty much business as usual by Saturday.
Read the full story
http://www.realtor.com/news/trends/real-estate-market-during-majorholidays/?cid=soc_20151123_55564676&adbid=668806971554791424&adbpl=tw&adbpr=17351940
Four reasons to stay invested in US housing
Source: HousingWire
Pacific Investment Management Company (PIMCO), the global investment management firm, has
outlined four key reasons why the housing market has some promising opportunities ahead and remains a
smart investment. Firstly, there has been strong job growth with consumer confidence growing as well.
Notably, more than 750,000 new jobs have been added in the 25- to 34-year-old cohort, an important
segment for first-time buyers. Low inventory and rising pent-up demand is also a positive sign for
growth, as the US has been significantly under-building relative to long-term demand. PIMCO also cites
increased willingness to lend on the part of banks.
Read the full story
http://www.housingwire.com/articles/35673-here-are-4-reasons-to-stay-invested-in-us-housing
Talking Points …

Home prices in 20 U.S. cities rose more than expected in September, according to the latest
S&P/Case Shiller Home Price Index.

The 20-city composite rose 5.5 percent year over year in September, compared with consensus
estimates for a 5.2 percent rise.

The S&P Case Shiller U.S. National Home Price Index, which measures all nine U.S. census
divisions, was up 4.9 percent from the same time last year, ticking up at a slightly faster pace than
August's 4.6 percent increase.