Pending Home Sales Index Hits New Record
It seems that just about every indicator related to real estate is hitting new highs!
Now, the National Association of Realtors® reports that as of April, "The Pending Home Sales Index, a leading indicator for the housing market, has risen to the highest level on record".
Just what is the Pending Home Sales Index? Well, read here:
"The Pending Home Sales Index*, based on data collected for April, stands at 128.2, which is 3.6 percent higher than March and 9.2 percent above April 2004. The previous record was 128.1 in October 2004. The index is based on pending sales of existing homes, including single-family and condo; a sale is pending when the contract has been signed but the transaction has not closed. Pending home sales typically close within one or two months of signing."
[note: the asterick refers to this:
"* The Pending Home Sales Index is based on a large national sample, 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 from 2001 through 2004 closely parallels the level of closed existing-home sales in the following two months."
If you want to read more, go here.