March Pending Home Sales Rise, Market Recovering
May 16, 2012
Tips & Trends
From Rory S. Coakley on some of the latest real estate news and happenings.
Pending home sales have increased in March and are well above where they were a year ago, another signal the housing market is recovering, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 4.1 percent to 101.4 in March from an upwardly revised 97.4 in February—that makes it 12.8 percent above March 2011 when it was 89.9. This data reflects contracts but not closings.
The index is now at the highest level since April 2010 when it reached 111.3.
Lawrence Yun, NAR chief economist, said 2012 is expected to be a year of recovery for housing. “First quarter sales closings were the highest first quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good,” he said.
“The housing market has clearly turned the corner. Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means home prices will be rising in more areas as the year progresses,” Yun said.
The PHSI in the Northeast slipped 0.8 percent to 78.2 in March but is 21.1 percent above March 2011. In the Midwest the index declined 0.9 percent to 93.3 but is 16.9 percent higher than a year ago. Pending home sales in the South rose 5.9 percent to an index of 114.1 in March and is 10.6 percent above March 2011. In the West the index increased 8.7 percent in March to 108.0 and is 9.0 percent above a year ago.
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.
NOTE: Existing-home sales for April will be reported May 22, the next Pending Home Sales Index will be released May 30 and first quarter metro area home prices will be released May 9; release times are 10:00 a.m. EDT.
Source: National Association of Realtors, realtors.org
If you would like to suggest a topic for comment in one of our future emailers, please let me know. You can always reach me at email@example.com or by phone 301-637-0966. I look forward to hearing from you!
Rory S. Coakley
Coakley Realty, Inc.
20 Courthouse Square, Suite 107
Rockville, MD 20850
FIND THE PROPERTY YOU NEED.PROPERTY SEARCH
CONTACT US TODAY
Featured Real Estate Listings
Residential 5937 AVON DR,
BETHESDA, MD 20814
New Price, Great Value!! SPECTACULAR renovated & expanded home features Vaulted Ceilings, Hrwd Floors, Updated Kitchen& Baths, Arched Doorways and Open Floor plan. Fully fin on both levels enjoy elegant dining room, spacious family room that opens to patio, 5 bedrooms, 3.5 baths, (2 master bdrms) rec room, library, gym & MORE!!VIEW LISTING
Residential 24 COURTHOUSE SQ #107,
ROCKVILLE, MD 20850
Wow! Rarely available first floor unit (located on the second level) with over sized open patio! Great for entertaining or relaxing. This is a must see. Patio overlooks bustling downtown Rockville. This great one bedroom one den unit with parking has been freshly painted throughout and is ready to move right in. Parking included with the price.VIEW LISTING
Residential 8421 CRIMSON LEAF COURT,
POTOMAC, MD 20854
Set on a stunning lot in the beautiful Avenel neighborhood, this three-story house is the perfect place to call home. Want to learn more about our featured listing in Potomac? Call 301-637-0966 to speak with an expert at Coakley Realty or take a virtual tour and see it for yourself!VIEW LISTING