Pending Home Sales: Now & Then

If you’ve been keeping up with the housing market lately you may have heard of a rebound in home prices and a lack of available homes for sale yet many don’t seem to beleive the real estate market is any better in 2012 than it was last year in 2011.

The folks over at Keeping Current Matters decided to graph home sales over the last two years based on the National Association of Realtor‘s Pending Home Sales Report to compare.

The methodology for the report as per NAR:

The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.”

As demonstarted by this graph, the number of pending home sales has substantialy improved since last year giving the housing recovery a certain level of credibility.

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About Daniel Di Matteo

Realtor at CENTURY 21 Award, Daniel was Voted U-T San Diego’s Best Real Estate Agent in 2014. A Husband, Father, and most recently, accomplished Blog writer, which explains your visit today.