There are several different reports that the National Association of Realtors (NAR) releases every month with regards to home sales, home prices as well as other real estate related topics. One of these reports that some people often times don’t see the value in is the Pending Home Sales Report which counts the number of homes that are in pending status, or under contract, for that time period. A home sale is deemed pending when the contract has been signed by both parties involved but the transaction hasn’t been finalized; this typically takes place a few weeks to a month after going into pending status. While some may look to NAR’s Existing Home Sales Report to see the health of the real estate market, the Pending Home Sales Report is actually a better indicator of the market’s current state.
According to the National Association of Realtors, the Pending Home Sales Report is calculated by “an index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing home sales in 2001 fell within the range of 5 to 5.5 million, which is considered normal for the current USpopulation.” According to the most current report, pending home sales nationwide increased by a little more than 3% and are the highest they have been since this time last year; also pointing to the continuing improvement of the housing market is that the number of pending home sales is above 100 (which is deemed average) for the third month in a row.