{"id":3039,"date":"2020-07-01T05:00:25","date_gmt":"2020-07-01T10:00:25","guid":{"rendered":"https:\/\/nwiloanguy.com\/blog\/a-historic-rebound-for-the-housing-market\/"},"modified":"2021-05-18T20:22:44","modified_gmt":"2021-05-19T01:22:44","slug":"a-historic-rebound-for-the-housing-market","status":"publish","type":"post","link":"https:\/\/nwiloanguy.com\/blog\/a-historic-rebound-for-the-housing-market\/","title":{"rendered":"A Historic Rebound for the Housing Market"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" decoding=\"async\"  src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2020\/06\/30172714\/20200701-KCM-Share-549x300.jpg?w=358&#038;ssl=1\" class=\"webfeedsFeaturedVisual wp-post-image\" alt=\"A Historic Rebound for the Housing Market | Simplifying The Market\" style=\"margin-bottom: 5px;clear:both;max-width: 100%\" \/><\/p>\n<p>Pending Home Sales increased by 44.3% in May, registering the highest month-over-month gain in the index since the <em>National Association of Realtors <\/em>(NAR) started tracking this metric in January 2001. So, what exactly are pending home sales, and why is this rebound so important?<span id=\"more-42599\"><\/span><\/p>\n<p>According to <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/housing-statistics\/pending-home-sales\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">NAR<\/a>, the <em>Pending Home Sales Index <\/em>(PHS) is:<\/p>\n<blockquote>\n<p><em>\u201cA leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos, and co-ops. Because a home goes under contract a month or two before it is sold, the Pending Home Sales Index generally leads Existing-Home Sales by a month or two.\u201d<\/em><\/p>\n<\/blockquote>\n<p>In real estate, pending home sales is a key indicator in determining the strength of the housing market. As mentioned before, it measures how many existing homes went into contract in a specific month. When a buyer goes through the <a href=\"https:\/\/www.simplifyingthemarket.com\/2020\/02\/28\/10-steps-to-buying-a-home-infographic-2\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">steps<\/a> to purchase a home, the final one is the closing. On average, that happens about two months after the contract is signed, depending on how fast or slow the process takes in each state.<\/p>\n<h4><strong>Why is this rebound important? <\/strong><\/h4>\n<p>With the COVID-19 pandemic and a shutdown of the economy, we saw a steep two-month decline in the number of houses that went into contract. In May, however, that number increased dramatically <em>(See graph below):<\/em><a href=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2020\/06\/30173124\/20200701-MEM-Eng-1.jpg?ssl=1\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-42604\" src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2020\/06\/30173124\/20200701-MEM-Eng-1.jpg?resize=650%2C366&#038;ssl=1\" alt=\"A Historic Rebound for the Housing Market | Simplifying The Market\" width=\"650\" height=\"366\" \/><\/a>This jump means buyers are back in the market and purchasing homes right now. Lawrence Yun, <em>Chief Economist<\/em> at NAR mentioned:<\/p>\n<blockquote>\n<p><em>\u201cThis has been a spectacular recovery for contract signings and goes to show the resiliency of American consumers and their evergreen desire for homeownership\u2026This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery.\u201d<\/em><\/p>\n<\/blockquote>\n<p>But in order to continue with this trend, we need more houses for sale on the market. Yun continues to say:<\/p>\n<blockquote>\n<p><em>\u201cMore listings are continuously appearing as the economy reopens, helping with inventory choices\u2026Still, more home construction is needed to counter the persistent underproduction of homes over the past decade.\u201d<\/em><\/p>\n<\/blockquote>\n<p>As we move through the year, we\u2019ll see an increase in the number of <a href=\"https:\/\/www.simplifyingthemarket.com\/2020\/06\/30\/are-new-homes-going-to-be-available-to-buy-this-year\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">houses being built<\/a>. This will help combat a small portion of the inventory deficit. The lack of overall inventory, however, is still a challenge, and it is creating an opportunity for homeowners who are ready to sell. As the graph below shows, during the last 12 months, the supply of homes for sale has been decreasing year-over-year and is not keeping up with the demand from homebuyers.<a href=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2020\/06\/30173123\/20200701-MEM-Eng-2.jpg?ssl=1\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-42603\" src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2020\/06\/30173123\/20200701-MEM-Eng-2.jpg?resize=650%2C366&#038;ssl=1\" alt=\"A Historic Rebound for the Housing Market | Simplifying The Market\" width=\"650\" height=\"366\" \/><\/a><\/p>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>If you decided not to sell this spring due to the health crisis, maybe it\u2019s time to jump back into the market while buyers are actively looking for homes. Let\u2019s connect today to determine your best move forward.<\/p>\n<p>Source: New feed<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pending Home Sales increased by 44.3% in May, registering the highest month-over-month gain in the index since the National Association of Realtors (NAR) started tracking this metric in January 2001. So, what exactly are pending home sales, and why is this rebound so important? According to NAR, the Pending Home Sales Index (PHS) is: \u201cA [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3040,"comment_status":"false","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10157519356927224_105287467588662":"","twitter_15771620_15771620":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[54],"class_list":{"0":"post-3039","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-local-info","8":"tag-100-financing","9":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Historic Rebound for the Housing Market&#8212;NWI Loan Guy Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nwiloanguy.com\/blog\/a-historic-rebound-for-the-housing-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Historic Rebound for the Housing Market&#8212;NWI Loan Guy Blog\" \/>\n<meta property=\"og:description\" content=\"Pending Home Sales increased by 44.3% in May, registering the highest month-over-month gain in the index since the National Association of Realtors (NAR) started tracking this metric in January 2001. 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According to NAR, the Pending Home Sales Index (PHS) is: \u201cA [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/nwiloanguy.com\/blog\/a-historic-rebound-for-the-housing-market\/\" \/>\n<meta property=\"og:site_name\" content=\"NWI Loan Guy Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/NWIHomeLoans\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/NWIHomeLoans\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-01T10:00:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-05-19T01:22:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i2.wp.com\/nwiloanguy.com\/blog\/wp-content\/uploads\/2020\/07\/20200701-KCM-Share-549x300-1.jpg?fit=549%2C300&ssl=1\" \/>\n\t<meta property=\"og:image:width\" content=\"549\" \/>\n\t<meta property=\"og:image:height\" content=\"300\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" 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