As we hit the mid-year mark, I wanted to share with you some of the national statistics and trends that are occurring this year as we are beginning to see a strong market recovery. Home sales are off to their best year since the downturn and new home sales are also making a comeback.
Pending home sales continued to rise in May and are now at their highest level in over nine years. The Pending Home Sales Index, a forward-looking indicator based on contract signings, climbed 0.9 percent to 112.6 in May and is now 10.4 percent above May 2014 (101.9). The index has now increased year-over-year for nine consecutive months and is at its highest level since April 2006 (113.7).
The Pending Home Sales Index in the Northeast increased 6.3 percent to 93.9 in May, and is now 10.6 percent above a year ago. In the Midwest the index declined 0.6 percent to 111.4 in May, but is still 7.8 percent above May 2014. Pending home sales in the South decreased 0.8 percent to an index of 127.8 in May but are still 10.6 percent above last May. The index in the West rose 2.2 percent in May to 104.5, and is 13.0 percent above a year ago.
One concern I see with the increase in sales activity is a lagging correspondence of increase in inventory both nationwide and here at the lake. As demand surges and supply dwindles, prices will naturally increase. I think this will drive further recovery in the new home construction market. This will in turn ease the inventory shortage and should temper the potential for unsustainable growth in values.
Michael has been selling real estate at the Lake of the Ozarks since 1981. He is one of the most respected brokers in the area. If you would like to work with Michael in the sale or purchase of property, contact him at 573.365.SOLD or firstname.lastname@example.org View thousands of lake area listings at www.YourLake.com $1 million plus homes at www.LakeMansions.com You can also view each months’ article, ask questions and offer your opinion on Michael’s real estate blog, www.AsTheLakeChurns.com