Pending Home Sales Notch Record-Setting Monthly Increase in May
It’s been a challenging year for Houston’s real estate industry, but things are looking up. Here at On-Target! we’ve been ramping up marketing efforts with Houston real estate clients who are starting to bounce back from COVID-19.
So it's great news to hear that home sales are rising across the country. May proved to be a comeback month for pending home sales, with positive contract activity after two previous months of declines due to COVID-19, according to a press release from National Association of Realtors
The report shows that every major region recorded an increase in month-over-month pending home sales transactions, while the South also experienced a year-over-year increase in pending transactions.
The Pending Home Sales Index (PHSI), a forward-looking indicator of home sales based on contract signings, rose 44.3% to 99.6 in May, chronicling the highest month-over-month gain in the index since NAR started this series in January 2001. Year-over-year, contract signings fell 5.1%. An index of 100 is equal to the level of contract activity in 2001.
“This has been a spectacular recovery for contract signings, and goes to show the resiliency of American consumers and their evergreen desire for homeownership,” said Lawrence Yun, NAR’s chief economist. “This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery.”
“More listings are continuously appearing as the economy reopens, helping with inventory choices,” Yun said. “Still, more home construction is needed to counter the persistent underproduction of homes over the past decade.”
Whether you're a homebuilder, developer, remodeler or building materials manufacturer, On-Target! is here help you thrive in the downturn and come out of this ahead.