The National Association of Realtors (NAR) shared their Pending Home Sales Index. The index looks at home sales based on contracts signed and discovered that numbers from May of this year were not as impressive as they were last year at the same time:
“With last month's decline, the index reading is still the third highest in the past year, but declined year-over-year for the first time since August 2014.”
Highlights from the index included seeing a drop for the first time in two years, a point that mainstream media was quick to share. A lot of spectators have concluded that this is a sign that home sales are starting to slow down.
Those of us who have been preparing to sell may be concerned about the new reports. However, let us alleviate those worries for you.
While it's true that the index dropped in May, it is also true that the index has been increasing steadily every month for the last eighteen months leading up to May. The graph below shows the pattern of home sales over time starting in January of 2014:
NAR Chief Economist, Lawrence Yun explained that the index indication wasn't because of a slowing market but was instead due to a low housing inventory:
“Total housing inventory at the end of each month has remarkably decreased year-over-year now for an entire year. There are simply not enough homes coming onto the market to catch up with demand.”
Check out the graph below as explained by Yun:
If you're thinking about selling, do not let this report discourage you! Rather, this report suggests that now may be the perfect time to capitalize on the market!
Do you have questions about buying/selling a home in this market? Feel free to speak with one of our real estate consultants at Showcase Realty at 704.997.3794 or send us a message here!
Are you hoping to sell your home fast and in a less amount of hassle? You need Showcase Realty's help! Your home will sell in 120 days or I will pay you $2500! Details Here!
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