Pending and New Home Sales Rise – NMP Skip to main content

Pending and New Home Sales Rise

Phil Hall
Oct 27, 2016
It was certainly a September to remember when it came to home sales, according to a pair of new data reports

It was certainly a September to remember when it came to home sales, according to a pair of new data reports.

The National Association of Realtors’ (NAR) Pending Home Sales Index (PHSI) took a 1.5 percent upturn to 110.0 in September after a slight downward revision of 108.4 in August. Last month’s PHSI is also 2.4 percent higher on a year-over-year measurement.

Regionally, the picture was much more mixed: The PHSI in the Northeast fell 1.6 percent to 96.5 in September while the Midwest index dipped by 0.2 percent to 104.6. However, pending home sales helped pushed the South’s index up 1.9 percent to 122.1 and the West saw a 4.7 percent leap in September to 107.3.

“The one major predicament in the housing market is without a doubt the painfully low levels of housing inventory in much of the country,” said NAR Chief Economist Lawrence Yun. “It’s leading to home prices outpacing wages, properties selling a lot quicker than a year ago2 and the home search for many prospective buyers being highly competitive and drawn out because of a shortage of listings at affordable prices.”

NAR’s report follows data from the U.S. Census Bureau and the Department of Housing and Urban Development that found last month’s sales of new single-family were at a seasonally adjusted annual rate of 593,000, which is 3.1 percent above the revised August rate of 575,000 and is 29.8 percent above the September 2015 estimate of 457,000. The median sales price of new houses sold in September was $313,500, while the average sales price was $377,700. The seasonally adjusted estimate of new houses for sale at the end of September was 235,000, which represents a supply of 4.8 months at the current sales rate.

Robert Dietz, chief economist at the National Association of Home Builders (NAHB), credited these numbers with “low mortgage rates, continued job growth and tight inventory levels—[these] are all factors that point to increased housing production as we move into 2017.” 

Published
Oct 27, 2016
Chairman Xu Sells Off Personal Assets To Avoid Default

The Evergrande saga continues as Chairman Xu Jiayin sells off 7 billion yuan ($1.1 billion) of his personal assets to prop up the deflating property giant.

Industry News
Nov 23, 2021
OptiFunder Secures $25 Million In Capital

OptiFunder, a warehouse management system provider for mortgage originators, raised $25 million in additional capital lead by Arthur Ventures, a growth capital firm focused on high-growth, founder-led and capital efficient B2B software companies.

Tech
Nov 23, 2021
Mortgage Company Donates $100K To High School In Memory Of Fallen U.S. Navy Corpsman

Cleveland-based CrossCountry Mortgage donated $100,000 to Milan Edison High School in memory of U.S. Navy Corpsman, Maxton W. Soviak, who died while assisting in the evacuation of Americans and refugees in Afghanistan in August.

Community
Nov 23, 2021
MISMO Seeks To Standardize Pre-Closing Title Data

Forming workgroup to focus on standardizing document datasets to streamline process and increase efficiency.

Industry News
Nov 23, 2021
Pandemic's Impact On Real Estate Around The World

Although the impact of the COVID-19 pandemic on the real estate industry has been well-documented within the United States, it’d be prudent to know how the global event impacted other countries as well. 

Industry News
Nov 22, 2021
Housing Market Potential Strengthens Modestly

First American Financial Corporation's Potential Home Sales Model for October 2021 reported that potential existing-home sales increased 0.1% month-over-month to 6.27 million, with household formation continuing to grow, largely driven by millennials.

Analysis and Data
Nov 22, 2021