I have been writing all year about the increase in Marin County home sales, and in my most recent monthly update, my Marin County Real Estate Market Update for October 2012, I pointed out that home sales had increased by almost 40% year over year.
In an article entitled “Marin Home Sales, Prices Up,” published yesterday, the Marin Independent Journal commented on the continuing trend of increasing sales resulting from low prices and limited inventory as well.
Homes were also sold at a furious pace last month across the United States.
According to the National Association of REALTORS® (NAR), the Pending Home Sales Index rose 5.2 percent in October, crossing the benchmark 100 reading, and moving to 104.8.
It’s a 5-point improvement from September’s revised figure and the highest reading since April 2010 — the last month of that year’s federal home buyer tax credit.
October also marks the 18th consecutive month during which the index showed year-to-year gains.
As a housing market metric, the Pending Home Sales Index (PHSI) differs from most commonly-cited housing statistics because, instead of reporting on what’s already occurred, it details what’s likely to happen next.
The PHSI is a forward-looking indicator; a predictor of future sales. It’s based on signed real estate contracts for existing single-family homes, condominiums, and co-ops. Later, when the contract leads to a closing, the “pending” home sale is counted in NAR’s monthly Existing Home Sales report.
Historically, 80 percent of homes under contract, and thus counted in the Pending Home Sales Index, will go to settlement within a 2-month period, and a significant share of the rest will close within months 3 and 4. The PHSI is a predictor of Existing Home Sales.
Regionally, the Pending Home Sales Index varied in October 2012 :
- Northeast Region : 79.2; +13 percent from October 2011
- Midwest Region : 104.4; +20 percent from October 2011
- South Region : 117.3; +17 percent from October 2011
- West Region : 105.7; +1 percent from October 2011
A Pending Home Sales Index reading of 100 or higher denotes a “strong” housing market.
Of course, with rising home sales comes rising home values. 2012 has been characterized by strong buyer demand amid falling housing supplies. It’s one reason why the Case-Shiller Index and the FHFA’s Home Price Index are both showing an annual increase in home prices. Plus, with mortgage rates low as we head into December, the traditional “slow season” for housing has been anything but.
The housing market is poised to end 2012 with strength. 2013 is expected to begin the same way.
For information on our local Marin County market, click on the link to read my Marin County Real Estate Market Update for October 2012. I publish a detailed report every month. To receive it and my monthly eNewsletter, please email me to be added to the distribution list at Sylvie@YourPieceofMarin.com.
About the author: The above Real Estate information on Marin County Real Estate was provided by Sylvie Zolezzi. I can be reached via email at Sylvie@YourPieceOfMarin.com or by phone/text at 415.505.4789. I am an award winning Realtor specializing in luxury residential real estate in beautiful Marin County, just north of the Golden Gate Bridge.
My goal is to provide you with the best home buying or selling experience possible by combining my business and financial experience with meticulous attention to detail and a warm, personable and caring approach to meeting your needs. I have an excellent track record as a successful, results-oriented negotiator and effective communicator. My analytical skills and understanding of current market conditions, along with my ability to utilize a broad range of cutting edge technological and innovative marketing resources, make me an invaluable real estate resource.
I am a long term Marin County resident and home owner. I strongly believe our quality of life is extraordinary and practically unmatched. I love our community, quaint towns and vast open space and never tire of their breathtaking beauty. I know the neighborhoods, the schools, the amenities; I know where you want to live. I know and love Marin County!
I specialize in Luxury Homes in the following towns in Marin County: Sausalito, Tiburon, Belvedere, Mill Valley, Corte Madera, Larkspur, Greenbrae, Kentfield, Ross, San Anselmo, San Rafael, Fairfax, and Novato.