Multiple Offers!
In what’s becoming a regular occurrence, housing data blew away economists expectations Tuesday.
As reported by the National Association of Realtors®, the Pending Home Sales Index posted its 6th consecutive monthly gain in July.
After a meteoric rise that started in January, the index is now at its highest levels in more than 2 years.
A “pending home sale” is a home that is under contract to sell, but not yet closed. It’s not the same as an actual home sold, but data shows that nearly 80% of homes under contract close within 2 months and many more close in months 3 and 4.
Prices Are Heading Up
Home buyers — take note. When the Pending Home Sales Index is rising, it means that market activity has picked up. This can lead to any one, or a combination, of the following:
- Multiple-offer situations
- Reduced negotiation leverage over sellers
- Higher home sale prices with fewer concessions
So, consider yourself alerted. If you’re buying a home in the next several months, expect the recent run in Pending Sales to lead to a run in closed sales, too. That should lead home prices higher in most markets.
Indeed, we’re already seeing it. Case-Shiller says prices are on the upswing.
Related Posts
The Pending Home Sales Index Says Higher Home Prices Ahead
Expect a Strong Spring Market Based on the Pending Home Sales Index
June’s Pending Home Sales Numbers Give the Buyer Even More of An Edge
Pending Home Sales Are Up for the 7th Straight Month
New Housing Starts are Good for Buyers, Bad For Sellers
Real Estate Prices Finally Rising Around The US
