Contracts signed for previously owned California homes took a dip in June, indicating that the decline in foreclosures is slowing the Golden State sales recovery.
The California Assn. of Realtors said Tuesday that its index for pending homes fell 3.8% from the prior month. The index posted a 4.7% increase from the same month a year prior.
Contracts are an early indicator of where sales are headed. Sales often close six to eight weeks after contracts are signed so a decline in June could mean weakness when July and August sales statistics are reported.
In a healing market, sales should be accelerating as buyers gain confidence that their investments won’t be worth less in the future than what they pay today.