Even with the coronavirus pandemic in our midst, the housing market was a beehive of activities. Inventories were low, while the demand was insatiable due to the historically low mortgage rates. Since the reopening of the economy, the housing market has been at the forefront, leading the economy towards recovery. Data from all around the real estate market continue to prove further that that is true.
The latest set of data is from the Pending Home Sales Index (PHSI), by the National Association of Realtors. The PHSI is a leading indicator for the housing market, whose data is based on pending sales of existing homes (contract signings), whose transactions have not been closed.
According to the index, pending home sales continued to trend upwards in August, representing four uninterrupted months of upwards trending of pending home sales. The August PHSI inclined 8.8% to 132.8 in August, representing an all-time high rate. The August figure represents a 24.2% increase compared to the same time last year.
“Tremendously low mortgage rates – below 3% – have again helped pending home sales climb in August,” NAR’s chief economist, Lawrence Yun said. “Additionally, the Fed intends to hold short-term fed funds rates near 0% for the foreseeable future, which should in the absence of inflationary pressure keep mortgage rates low, and that will undoubtedly aid homebuyers continuing to enter the marketplace.”
Despite the August pending contract signings hitting an all-time high, Yun notes that that won’t necessarily result in “a record number of home sales because not all contracts lead to closings, and due to sampling size variations.”
PHSI Regional Breakdown.
In August, all four regional indices reported increased contract signings on a month-over-month basis.
The Northeast region PHSI inclined 4.3% to 117.1, which represents a 26.0% jump from the same time last year. The Midwest PHSI rose 8.6% to 124.5 last month, which is 25.0% increase from a year ago.
The South region recorded an 8.6% increase, which pushed it to an index of 154.2, representing a 23.6% from a year ago. While in the West, the PHSI rose 13.1% to 120.3, representing a 23.6% year-over-year increase.
The September PHSI will be out on October 29 at 10.00 a.m. ET.
At The Power Is Now, we continue to insist and remind you that the best time to buy a home is now. All odds are perfectly aligned, creating a profitable playground for both the buyers and the sellers. Please don’t wait until it’s too late. The power is now.
We also continue to advocate for advocate homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. In this regard, we have a team of professional realtors— VIP Agents stationed nationwide to help you with anything you need in buying a home. You can get in touch with the VIP Agents at https://thepowerisnow.com/vipagentsservices/. If you can’t find an agent from your area, you can contact me directly for a referral.
We’re also committed to keeping you up-to-date with what is happening around the real estate market. Ensure you stay updated with any developing real estate market news by regularly checking our blog page at https://thepowerisnow.com/blog/. You can also set up an appointment to speak directly to me at https://calendly.com/thepowerisnow/ericfrazier.
Disclaimer: The views and opinions of Eric Lawrence Frazier are his own and do not necessarily represent First Bank or any organization affiliated with Eric Lawrence Frazier, or the Power Is Now Media Inc. First Bank is an Equal Credit Opportunity Lender. Eric Lawrence Frazier, MBA, is also a Vice President and Mortgage Advisor with First Bank. NMLS#461807 and a California Licensed Real Estate Broker DRE# 01143482. Email: Eric.email@example.com. Ph: 714- 475-8629.
Eric Lawrence Frazier MBA
President and CEO
The Power Is Now Media Inc.