Home Sales Index - Bad News or Good News?
Two weeks ago, the National Association of Realtors (NAR) released their Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings. The report revealed that May 2016 numbers weren’t quite as good as the year before: “With last month’s decline, the index reading is still the third highest in the past year, but declined year-over-year for the first time since August 2014.”
Some mainstream media ran headlines highlighting that the index had dropped for the first time in two years. Many read this as an indication that the housing market must be slowing down. If you own a Reno home and were thinking about selling, these reports may have caused you some concern. We want to alleviate that concern today.
Though it is true that the index dropped in last month’s report, let’s take a closer look at the numbers. The index has increased every month over the last eighteen months, leading up to this past May. Lawrence Yun, Chief Economist at NAR, explained that it wasn’t a slowing of the market that caused the index to slip, but instead a lack of housing inventory: “Total housing inventory at the end of each month has remarkably decreased year-over-year now for an entire year. There are simply not enough homes coming onto the market to catch up with demand.”
The Bottom Line:
If anything, this report shows that it may be the perfect time to sell your home! If you have been thinking ‘I should sell my Reno home’ give Marshall Realty a call today at (775) 787-7400. We will evaluate your situation with you and see if it’s the right time for you to take advantage of this hot housing market!