The June Rise in Pending Home Sales

The number of existing homes entering the purchase contract stage during June rose 5.3 percent after a downwardly revised decline of 4.9 percent in May. Sounds good at first blush, but, in San Diego and most other housing bubble areas, it is estimated that One-third of all home sales are now distressed properties. On a year-over-year basis, pending home sales are DOWN 12.3 percent. The real key for the San Diego housing market is NOT home sales, but, home prices! To me, today's San Diego anemic housing activity indicates that home prices will continue their fall and even accelerate in Winter as home prices approach 50% of their 2005 highs in many communities.                                            San Diego income property sales