The Pending Home Sales Index (PHSI) is a forward-looking indicator based on contract signings. It found rising pending home sales on average across the country. However, the movement was only slight in June because there were still declines in the midwest and South.
“With only the Northeast region having an adequate supply of homes for sale, the re-occurring dilemma of strained supply causing a run-up in home prices continues to play out in several markets, leading to the last two months reflecting a slight, early summer cool down after a very active spring,” said National Association of Realtors chief economist Lawrence Yun. “Unfortunately for prospective buyers trying to take advantage of exceptionally low mortgage rates, housing inventory at the end of last month was down almost 6 percent from a year ago, and home prices are showing little evidence of slowing to a healthier pace that more closely mirrors wage and income growth.”
“Until inventory conditions markedly improve, far too many prospective buyers are likely to run into situations of either being priced out of the market or outbid on the very few properties available for sale,” Yun said.
Yun also noted another positive trend: sales to investors are going down. This improves ability for first time buyers to get their foot in the door.
According to Florida Realtors, despite any current pending home sale activity, existing-home sales this year are still expected to be around 5.44 million, a 3.6 percent boost from 2015 and the highest annual pace since 2006.
Overall, rising pending home sales are a good sign for the housing market. It is a smart time to invest in real estate in Miami. Or, a smart time to buy the dream home you want for your family. Miami has amazing residential and commercial properties in all neighborhoods in the city.