Once again, it is clear that the real estate industry is alive and well. With an overall real estate market that shows strong growth in sales, we again see tha
May 2015’s pending home sales hit nine-year-high
t in May, pending home sales were up to the highest level since 2006. The Pending Home Sales Index (PHSI), climbed 0.9 percent to 112.6 in May. The PHSI is based on contract signings last month to indicate pending home sales. This level was an improvement from a slightly low index of 111.6 in April. The PHSI is now 10.4 percent above May 2014, and has increased year-over-year for nine consecutive months. These are some of the best statistics of pending home sales seen since the recession.
Once again, this stronger real estate market has been able to develop because of such an increase in jobs in the US nationwide, where millions of jobs were added in the last year.
“The steady pace of solid job creation seen now for over a year has given the housing market a boost this spring,” says Edward Yun, National Association of Realtors Chief Economist. “It’s very encouraging to now see a broad-based recovery with all four major regions showing solid gains from a year ago.”
While encouraging, Yun does issue a warning: home prices are rising, and quickly. He says that the home growth prices are increasing at four times the rate of wages, meaning they are rising at an unsustainable pace.
Right now, we see home sales increasing overall, with the PHSI just one indicator of this. While the job market has increased greatly over the past few years, wages are not catching up to the growing price of real estate.
Therefore, now is the time to purchase a piece of real estate in the Miami area. Clearly, it is a hot time to be buying homes and you too should join these buyers, before prices spike even further! Contact a RE/MAX Paradise Agent today.