NAR released a summary of pending home sales data showing that June’s pending home sales pace increased 16.6% last month and rose 6.3% from a year ago. This would be the second consecutive month of gains as well as the first year over year incline since the virus’s impact on the housing market.
Pending sales represent homes that have a signed contract to purchase on them but have yet to close. They tend to lead Existing Home Sales data by 1 to 2 months.
All three regions showed inclines from a year ago, except the Northeast which fell 0.9%. The West had the biggest gain in contract signings of 10.3% followed by the Midwest with an increase of 5.1%. The West had the smallest incline of 4.7%.
From last month, all four regions showed double-digit gains in contract signings. The Northeast had the most significant increase of 54.4% followed by the Midwest with an incline of 12.2%. The South rose 11.9% followed by the West with the smallest gain in signings of 11.7%.
The U.S. pending home sales index level for the month was 116.1.
June’s incline brings the pending index above the 100-level mark for the first time since February 2020.
The 100 level is based on a 2001 benchmark and is consistent with a healthy market and existing-home sales above the 5 million mark.
While Pending Home Sales data isn’t a perfect indicator (deals can fall apart for a variety of reasons), it is a really good benchmark.
In short, despite the economic impact of COVID-19, the housing market is doing quite well overall, but especially here in Florida.
With amazingly low interest rates and strong buyer demand, if you’re considering selling now is a great time to take advantage of that. You’ll get the highest sales price, and you should have multiple offers quickly.
Get started – contact me at (813) 489-9789 today!
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Original Article here: https://www.nar.realtor/blogs/economists-outlook/june-2020-pending-home-sales