Pending Home Sales Record
Pending Home Sales Record
The National Association of Realtors just reported today, that pending home sales for July hit their second highest level in a decade!
The Associations pending home sales index increased 1.3% in July. This level for the index puts it at 1.4% above year-ago levels and the second-strongest index reading since April!
The above index levels were based on a national basis, here in the West, the National Association of Realtors pending home sales Index reached the highest level in July it’s seen for the last three years!
Pending Home Sales Record
Now, a pending home sale is not a closed sale. What a pending sale is defined as is when an offer to purchase contract has been accepted by both the buyer and seller and then the property enters into an escrow. During escrow various inspections can be done on the property and most importantly, if there’s a new loan involved, there has to be an appraisal and official loan approval for the buyer. If successful, the escrow will close with the transfer of the property title to the new buyer.
The pending home sales Index is usually a leading indicator for the strength of the real estate market.
Here in San Diego, although the typical summer rush to get into a new property before the school year starts is pretty much concluded, or market remains strong. There is still a shortage of supply of resale homes in San Diego, this is especially true for the entry-level buyer.
Also, the National Association of Realtors forecast that existing residential home sales will hit 5.3 8 million this year! That figure, is up by 2.8% and is the highest level since 2006!
Lastly, the National Association of Realtors forecast median existing home price growth in 2016 to be 4%, which is actually down from 6.8% in 2015. Keep in mind this forecast is on a national basis, here in Southern California and San Diego in particular, the median existing home price growth for 2016 should well exceed the national average!
Pending Home Sales Record
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