Pending Home Sales Rise Again

LAS VEGAS - JULY 29:  A sign hangs outside a f...
Image by Getty Images via Daylife

The number of homes under contract to sell rose in June for the fifth straight month.

It’s the Pending Home Sales Index’s longest winning streak since 2003 and another piece of evidence that the housing market may be rebounding.

Separately, the data is interesting. All together, it paints the portrait of a recovery.

That said, we can’t forget that the Pending Home Sales Index is somewhat unique versus other real estate reports.  Whereas data on existing and new home sales measures closed transactions, the Pending Home Sales Index only measures intent to buy.

Just because a home goes under contract, in other words, doesn’t mean that it actually will sell.

Purchase transactions can fall apart for a multitude of reasons including, but not limited to, buyer-seller disputes, failed home inspections, and an inability to secure mortgage financing.  The Pending Home Sales Index doesn’t account for these types of issues.

In general, though, as the number of homes under contract increases, Existing Home Sales increase, too — usually on a 2-month lag.  Home sale data should remain strong through early-Fall, at least.

For active home buyers in Washington, be conscious of the fact that that more home sales plus falling home supplies leads to higher home values.  If you’re looking for a bargain, the longer you wait, the less likely you may be to find it.

Related posts:

  1. Pending Home Sales For December 2008 (31.913) Pending Home Sales still has its place, it’s a terrific…
  2. More Housing Strength : New Home Sales Surge In June (21.58) Once again, the housing market is showing that its worst…
  3. New Home Sales Figures Show Unexpected Improvement (18.813) The national housing market got its third piece of good…
  4. Strength In New Home Sales (17.679) In every American neighborhood, homes that are priced “right” are…
Reblog this post [with Zemanta]

One Response

  1. Encouraging, lets hope for a continuing upward trend.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: