The Pending Home Sales Index is a once monthly published account of all homes that have changed status on the MLS from an active listing (or home for sale) to a pending sale (or home under contract). By accounting for the number of homes pending nationwide the NAR publishes it’s index. where to get a viceroy package.
The real estate industry group positions the report as a predictor of future home sales activity, stating that 80 per cent of homes under contract will ‘close’ within 60 days, and most others will close within 120 days.
Though the index is intended to provide a look ahead to future Home Sales it can only be very accurate due to several factors. 1. It sample about 1 in 5 MLS transactions 2. It does not track for sale by owners. 3. It does not account for new home sales.
In addition, in a tough mortgage climate such as the one we are in now, a greater percentage of pending sales will fail to end at all due to lack of financing.The Pending Home Sales Index still has its place, however– it is a terrific look at the buy-side demand for homes.
The pending sales, which are for homes under contract, is 4, and closed sales in January of 2008 amounted to two. These two home sales had prices were paced at $415, $365, 000, and 000. The community’s real estate property prices have experienced a slight decline, and this could be obvious when looking at the lowest priced listing at $449, 000 and fining the two other home sales priced below that amount.
We can guage the real estate markets strength based on the Pending Home Sales Index by whether it rises or falls. When it is rising we can be assured that there are presently more buyers in the market and usually more demand brings price increases.
The Pending Home Sales Index experienced a dramatic increase in June 2008 for the 2nd time in 3 months. This occured even as most economists were calling for a decline. This indicates an overall gain in the market for demand.
Again, this doesn’t show us exactly how many of these operations have closed. We only know from this data that the market demand is increasing since more buyers are putting houses under contract. And typically when buyer demand is increasing then we can expect the real estate market won’t be far bhind.