Pending Home Sales Up but Experts Are Cautiously Optimistic

By
Real Estate Agent with RE/MAX Properties

Good news in the real estate market coming into 2018. Last year’s Pending Home Sales Index (PHSI) reported an uptick of 0.5% in December. It’s now at 110.1, which is the highest it has been since March of last year. 

The PHSI is based on pending sales of existing homes. This means the activity of signed contracts, though not yet closed home sales. The rubric was created in 2001 and the level of 100 is based on the contract activity in that year. 

This report from the National Association of Realtors shows that 2018 is off to a good start with some increased momentum. A combination of increasing wages and more jobs means that more and more buyers are ready to buy homes. Sadly, though, many buyers are having trouble finding the homes they want to buy due to record low supply levels. 

The National Association of Realtors said that last year home prices increased by 5.8%. That’s the sixth year in a row that home prices have increased at such a rapid rate, more than 5% in a year. This is due, in part, to a small inventory that causes prices to rise at a quicker pace. It is possible that new tax laws, which take away the previous financial motivation to buy, will affect the rate at which homes are selling, causing sales to slow. 

With households earning more income this year, they’ll be more able to set aside money for down payments. A demand will continue to increase this year in most of the market, although some higher priced markets, who will feel the pinch from the new laws, will probably see changes trending downward. 

Increasing mortgage rates could also affect the rate of sales. Rates are at their highest in four years. These rates are expected to continue on an upward trajectory. Experts recommend locking in lower rates now, before the rates rise further. 

The increasing mortgage rates and changing tax laws will most likely continue to affect the sales of homes. But buyers are still searching, despite low numbers of available homes. These numbers reported by the NAR show that the housing market is looking positive coming into the new year with a pinch of cautious optimism due to mortgage and tax changes on the horizon. 

The BCHome Team is here to help you with all of your real estate needs. Contact us at any time.  

Posted by

Get Educated.  Get Empowered.

For more information on this or any other topic, call Sal Poliandro, Broker Associate, Realtor, Marketing Advisor,

Short Sale Specialist and CDPE, Certified Distressed Property Expert

ePRO, SRES at 201-957-7650, visit our website: www.BCHomeTeam.com 

Follow me on Twitter: @bchometeam

Sal can be reached by snail mail at RE/MAX Properties 82 East Allendale Road  Suite 4B Saddle River, NJ 07458

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Tags:
real estate market
real estate market update
pending home sales

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
2,364,105
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Sal Poliandro - NJ Bergen County Realtor this is very good report on pending home sales.

Feb 19, 2018 10:51 AM #1
Rainmaker
366,321
Sal Poliandro - NJ Bergen County Realtor
RE/MAX Properties - Ridgewood, NJ
Short Sale Specialist - CDPE, SRES, SFR, IRES

John Pusa - Encouraging news indeed. 

Feb 19, 2018 10:55 AM #2
Ambassador
2,532,454
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

This is great news Sal. Hopefully this trend will continue for the foreseeable future!

Feb 19, 2018 03:10 PM #3
Rainmaker
366,321
Sal Poliandro - NJ Bergen County Realtor
RE/MAX Properties - Ridgewood, NJ
Short Sale Specialist - CDPE, SRES, SFR, IRES

Thanks Debe. Love Maxwell House :) 

Feb 19, 2018 03:22 PM #4
Rainmaker
2,571,495
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Hopes for a super quick sale! Should go well, I’m betting! All the best!

Mar 06, 2018 10:50 PM #5
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
366,321

Sal Poliandro - NJ Bergen County Realtor

Short Sale Specialist - CDPE, SRES, SFR, IRES
Ask me a question
*
*
*
*
Spam prevention

Additional Information