Homes are going under contract at a quickening pace.
In May, for the second time in 3 months, the Pending Home Sales Index crossed the 100 barrier, stretching to 101.1. A “pending home sale” is a home under contract to sell, but not yet sold.
Statistically, the Pending Home Sales Index reading is significant for two reasons.
First, the index’s reading is at its highest since April 2010. From this, we infer that today’s pace of home buying in Florida and nationwide is approaching the “stimulated” levels of two years ago — but without the federal stimulus.
This is a positive signal for the housing market.
Second, because the Pending Home Sales Index is a relative index; and, because it was assigned a value of 100 upon its inception in 2001, readings higher than 100 imply that the housing market is performing better than it did during the index’s first year.
2001 happened to be a strong year for housing. 2012, it seems, is shaping up to be a better one.
And, there’s another reason why the Pending Home Sales Index matters so much to buyer and sellers of Tampa — the Pending Home Sales Index is among the few “forward-looking” housing market indicators.
Rather than report on how the housing market looked 30-60 days in the past, as the Case-Shiller Index does; or the Existing Home Sales report, the Pending Home Sales Index looks 30-60 days to the future.
80% of homes under contract sell within 2 months so, as the Pending Home Sales Index goes, so goes housing. Based on May’s data, therefore, we can assume that home sale figures will rise through the summer.
If you’re shopping for homes right now, consider going under contract while the market remains somewhat soft. Mortgage rates are low and so are home prices. It makes for good home-buying conditions.
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nice article …………………having gr8 concepts
[...] Source: http://www.floridamortgageblogger.com/2012/07/03/pending-home-sales-index-2012/ [...]
This is excellent news and forecasts a better economy. Let’s hope that index continues its upward trend in the coming months and more houses get sold.
Yeah, I agree especially now that we’re at the brink of going into recession again.
I really enjoyed reading your post. Thank you for sharing so nice and helpful ideas, I appreciate your work. Keep it up and I hope to see more posts in the future.Thank you so much. Found what you have been looking for? Read more …
I think because of that statistic too, why the number of homes that are being rent out increase. The information you offer here is really useful and informative. Thanks for sharing the this post.
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I find myself reading your blog quite often! Really looking forward to read more.
Things are looking up finally here in the Sarasota Bradenton market, too. Our pending sales stats have been improving each month this year.
[...] Source: http://www.floridamortgageblogger.com/2012/07/03/pending-home-sales-index-2012/ [...]
Good job on this article! I really like how you presented your facts and how you made it interesting and easy to understand. Thank you.
I received a letter confirming my application status to the university I want to attend, but it says accounting pending as my major.
[...] Source: http://www.floridamortgageblogger.com/2012/07/03/pending-home-sales-index-2012/ [...]
U.S. New Home Sales down to a 12 year low. So, who believes this is the work of President Bush?
This is something you could predict a few months ago. It’s both good and bad news, but of course that what really matters is that the market tends to be more flexible and more houses get to be sold and traded every day.
[...] Source: http://www.floridamortgageblogger.com/2012/07/03/pending-home-sales-index-2012/ [...]
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An amazing post which includes true value based information in the concise manner. However, I expect if you could have written more about it. Overall its a nice post and please keep sharing more on the same topic.
Yet again you have posted a nice post. The best thing is that its unique presentation style makes it stand apart from the blog posts made in the past. I would like to visit here again and again.
This is excellent blog.Let’s hope that index continues its upward trend in the coming months and more houses get sold.
This is excellent blog.Let’s hope that index continues its upward trend in the coming months and more houses get sold.
excellent post and helpful post…. thanks for a sharing it…..
Informative articles and blogs are rare but i found this one meeting my requirements. However, the housing market and real estate is booming.
Thanks for your excellent information.
[...] Source: http://www.floridamortgageblogger.com/2012/07/03/pending-home-sales-index-2012/ [...]
[...] Source: http://www.floridamortgageblogger.com/2012/07/03/pending-home-sales-index-2012/ [...]