The Pending Home Sales Index is a forward-looking indicator based on contract signings, rather than closed sales. A property is placed in a pending status as soon as the contract is executed. A recent article by the Florida Association of Realtors states pending home sales have increased by 4.6% in January of this year.
While the increase was an average across the board, each of the four regions had increases ranging from 1.6% to 8.9%. The south had the largest increase of 8.9% and jumped to an index of 119.8, which is 3.1% lower than this time last year.
According to the Florida Association of Realtors, Lawrence Yun, NAR chief economist, says he expected an increase in January home sales because a “change in Federal Reserve policy and the reopening of the government were very beneficial to the market.”
Yun says higher rates discouraged many would-be buyers in 2018. “Homebuyers are now returning and taking advantage of lower interest rates, while a boost in inventory is also providing more choices for consumers.”
Clearly, Sarasota, Bradenton, Lakewood Ranch, and North Port are doing their share of building and providing possible homebuyers with plenty of inventory to choose from. Doing this and providing higher inventory levels typically leads to an increase in pending sales, which will lead to a very positive sale forecast in February and beyond.
The article also states income is rising higher than home prices and mortgage rates are lower than last year and steady. The high rates in 2018 discouraged many potential buyers from purchasing last year, however, they have now returned to the market and are ready to buy in 2019. Many good things to come.
For additional information on the real estate market in Southwest Florida, contact us directly at BrandyCoffey941@Gmail.Com or 941.404.4737.