The February Pending Homes Sales Index, (a leading indicator for the housing sector, based on pending sales of existing homes) from the National Association of Realtors showed a slight increase (1.6%) in homes under contract in December. This is on top of a report that existing home sales are predicted to be 5.54 million in 2017, a 1.7% increase over 2016. 2016 was the best year for home sales in a decade. Bottom line…buyers are looking for homes!
According to NAR’s Chief Economist, Lawrence Yun,
“Pending sales bounded last month as enough buyers fended off rising mortgage rates and alarmingly low inventory levels to sign a contract.”
Buyers are looking for homes, here is the problem!
Buyers are searching for existing homes for sale, but are having a hard time finding them as the supply of homes for ale is not keeping up with buyer demand!
“The main storyline in the early months of 2017 will be if supply can meaningfully increase to keep price growth at a moderate enough level for households to absorb higher borrowing cost. Sales will struggle to build on last year’s strong pace if inventory conditions don’t improve.”
What does this mean?
Buyers are out in force and competing against each other right now! If you are considering selling your home this year, we are strongly suggesting you put it on the market now! Please contact us so we can discuss how you can make the most of the current market conditions.