Tuesday, July 3rd, 2012
Category: Real Estate License
Pending sales of existing homes rebounded to a two-year high in May after dropping in April and giving some industry observers the heebie-jeebies.
According to the National Association of Realtors (NAR), the latest Pending Home Sales Index, improved by a seasonally adjusted 5.9 percent from April to May, climbing to 101.1 and equaling the high registered in March 2012. NAR said it is also the highest index level since April 2010.
For professional real estate agents, say an agent with a South Carolina real estate continuing education, the announcement only bolsters confidence that the home market is back in business.
A Pending Home Sales Index of 100 equals the average level of sales-contract activity in 2001, a good year for home sales.
“The housing market is clearly superior this year compared with the past four years,” declared Lawrence Yun, NAR’s chief economist, in a press release. “Actual closings for existing-home sales have been notably higher since the beginning of the year and we’re on track to see a 9 to 10 percent improvement in total sales for 2012.”
The Midwest posted the largest unadjusted year-over-year increase in pending sales: 22.7 percent. The Northeast, meanwhile, had the second-biggest unadjusted year-over-year jump at 19.3 percent.
The West gave the index its highest level at 108.7, although pending sales, unadjusted, were up only 7.1 percent from a year ago. The South saw pending sales, unadjusted, rise 14 percent from the same time a year ago.