{"id":912,"date":"2020-07-01T15:31:51","date_gmt":"2020-07-01T15:31:51","guid":{"rendered":"http:\/\/phphouses.com\/blog\/?p=912"},"modified":"2020-07-01T15:31:51","modified_gmt":"2020-07-01T15:31:51","slug":"historic-rebound-housing-market","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/historic-rebound-housing-market\/","title":{"rendered":"A Historic Rebound for the Housing Market"},"content":{"rendered":"
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A Historic Rebound for the Housing Market<\/p><\/div>\n

Pending Home Sales increased by 44.3% in May, registering the highest month-over-month gain in the index since the\u00a0National Association of Realtors\u00a0<\/em>(NAR) started tracking this metric in January 2001. So, what exactly are pending home sales, and why is this rebound so important?<\/p>\n

According to\u00a0NAR<\/a>, the\u00a0Pending Home Sales Index\u00a0<\/em>(PHS) is:<\/p>\n

\u201cA leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos, and co-ops. Because a home goes under contract a month or two before it is sold, the Pending Home Sales Index generally leads Existing-Home Sales by a month or two.\u201d<\/em><\/p><\/blockquote>\n

In real estate, pending home sales is a key indicator in determining the strength of the housing market. As mentioned before, it measures how many existing homes went into contract in a specific month. When a buyer goes through the\u00a0steps<\/a>\u00a0to purchase a home, the final one is the closing. On average, that happens about two months after the contract is signed, depending on how fast or slow the process takes in each state.<\/p>\n

Why is this rebound important?<\/strong><\/h4>\n

With the COVID-19 pandemic and a shutdown of the economy, we saw a steep two-month decline in the number of houses that went into contract. In May, however, that number increased dramatically\u00a0(See graph below):<\/em><\/p>\n

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Pending Home Sales (Since 2019)<\/p><\/div>\n

This jump means buyers are back in the market and purchasing homes right now. Lawrence Yun,\u00a0Chief Economist<\/em>\u00a0at NAR\u00a0mentioned<\/a>:<\/p>\n

\u201cThis has been a spectacular recovery for contract signings and goes to show the resiliency of American consumers and their evergreen desire for homeownership\u2026This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery.\u201d<\/em><\/p><\/blockquote>\n

But in order to continue with this trend, we need more houses for sale on the market. Yun continues to say:<\/p>\n

\u201cMore listings are continuously appearing as the economy reopens, helping with inventory choices\u2026Still, more home construction is needed to counter the persistent underproduction of homes over the past decade.\u201d<\/em><\/p><\/blockquote>\n

As we move through the year, we\u2019ll see an increase in the number of\u00a0houses being built<\/a>. This will help combat a small portion of the inventory deficit. The lack of overall inventory, however, is still a challenge, and it is creating an opportunity for homeowners who are ready to sell. As the graph below shows, during the last 12 months, the supply of homes for sale has been decreasing year-over-year and is not keeping up with the demand from homebuyers.<\/p>\n

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Housing Supply Year-Over-Year<\/p><\/div>\n

Bottom Line<\/strong><\/h3>\n

If you decided not to sell this spring due to the health crisis, maybe it\u2019s time to jump back into the market while buyers are actively looking for homes. Let\u2019s connect today to determine your best move forward.<\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
\nFacebook<\/a>
\nLinkedin<\/a>
\nTwitter<\/a>
\nInstagram<\/a><\/p>\n

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

Economic Recovery Finish Reading A Historic Rebound for the Housing Market<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[15,167,182,10,18,9,49,42,12,24,13,214,47,19,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/912"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=912"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/912\/revisions"}],"predecessor-version":[{"id":916,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/912\/revisions\/916"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}