The National Association of REALTORS’ just released the results of their latest Pending Home Sales Index, which showed a small 1.4% decline in signed contracts in August. Pending sales remain strong year-over-year as they were 6.1% higher than August ’14 and have now risen for 12 consecutive months.
WHAT IS THE PENDING HOME SALES INDEX (PHSI)?
NAR’s PHSI is “a forward-looking indicator based on contract signings”. The higher the Pending Home Sales Index number, the more contracts have been signed by buyers that will soon translate to sales.
In every major region of the country, pending sales are up year-over-year as shown by the graph below:
WHAT DOES THIS MEAN FOR THE MARKET?
Lawrence Yun, Chief Economist for NAR explained:
"Pending sales have leveled off since mid–summer, with buyers being bounded by rising prices and few available and affordable properties within their budget."
There is no need to worry
Yun went on to say, “Even with existing–housing supply barely budging all summer and no relief coming from new construction, contract activity is still higher than earlier this year and a year ago."
SO WHAT DOES THIS MEAN TO BUYERS?
There is a lot of competition out there right now for your dream home. Prices are going to continue to climb, act now before you are priced out of your future home.
WHAT DOES THIS MEAN TO SELLERS?
If you are on the fence about listing your home for sale and debating whether now is the time to move on with your plans of relocating… don't wait!
There are more buyers that are ready, willing and able to buy their first, second, third, vacation, or investment property now than there has been in years! The supply of homes for sale is not keeping up with the demand of these buyers.
Listing your home for sale now will give you the most exposure to buyers and the best sales price.
Whether you are planning on buying or selling a house this year, waiting to act no longer makes sense.