Pending Home Sales Have 2015 On Pace To Be Best Year in 9 Years
Here’s some good news from the real estate market: Pending Home Sales are up once again.
That trend continued in March.
The number of Pending Home Sales only increased by 1.1% from February to March.
However, March 2015 was 11.1% better than March of 2014.
The bigger news is that Pending Home Sales increased year-over-year for the 7th consecutive month. Once again, they are at their highest level since June 2013.
The National Association of Realtors Pending Home Sales Index increased to 108.6 in March. June 2013 saw an index of 109.4, so we aren’t too far off of that number. (For more info on how NAR calculates their index, go here).
Over the last few weeks I have been updating the local Charleston numbers from the MLS, including Pending Home Sales.
I noticed that while the numbers were up in February, they continued to increase in March.
So, it does not surprise me to see the national numbers continue to increase.
In many cases, some of the Pending Home Sales numbers I saw were the highest in years. Here is a look at the entire Charleston SC MLS numbers for Pending Sales:
You can see the national trend holding true locally as well. In January, there were 1149 Pending Home Sales, and it increased each month so far in 2015.
February saw 1465 Pending Home Sales, March saw 1832, and April is up to 2082.
March was the highest number since March of 2005, which saw 1855 Pending Home Sales–just 3 more than this March:
April 2015 is the highest number of Pending Home Sales we have seen in Charleston is at least the last 10 years, if not longer.
NAR won’t release April numbers until the end of May, but once again it looks like that number will continue to rise.
According to NAR Chief Economist Lawrence Yun, we could see 2015 as the best year for real estate in 9 years.
“Demand appears to be stronger in several parts of the country, especially in metro areas that have seen solid job gains and firmer economic growth over the past year,” he said.
“While contract activity being up convincingly compared to a year ago is certainly good news, the increased number of traditional buyers who appear to be replacing investors paying in cash is even better news.
It indicates this year’s activity is being driven by more long-term homeowners.”
Despite these numbers showing great potential for real estate in 2015, there are a couple potential setbacks that could keep us from realizing this year’s fullest potential:
“Demand in many markets is far exceeding supply, and properties in March sold at a faster rate than any month since last summer,” he said.
“This in turn has pushed home prices to unhealthy levels — nearly four or more times above the pace of wage growth in some parts of the country.
Simply put, housing inventory for new and existing homes needs to improve measurably to improve affordability.”
You can watch the full interview with Mr. Yun here:
So, what does this mean for Charleston SC?
As I mentioned earlier, many parts of the Charleston SC real estate market are seeing the highest numbers in years.
The overall Pending Home Sales numbers for the entire MLS are at the highest they have been in 10 years, if not ever.
When you break down the Pending Home Sales numbers by city, you see the same results:
Johns Island saw 75 in April, and that is the highest number in at least 10 years, if not ever.
Goose Creek had 105 in March, the highest since May of 2007 (with 109).
Hanahan had 43 in April, the most since September 2006 (with 53).
Summerville had 442 in April, and that was the most in at least 10 years, if not ever.
Moncks Corner had 93 in April, the most in at least 10 years, if not ever.
Mt Pleasant saw 337 in April, the most since March 2005 (with 386).
Isle Of Palms saw 39 in April, the most since August 2007 (with 95).
Sullivans Island has 8 in March, the most since also having 8 Pending Home Sales in both April 2013 and August 2005.
Daniel Island had 43 in April, the most since August 2005 (with 43).
That should tell you that the Charleston market is looking to be in good shape for 2015.
Demand remains strong, yet inventory remains low. Keep in mind this part of Mr. Yun’s quote:
“Demand appears to be stronger in several parts of the country, especially in metro areas that have seen solid job gains and firmer economic growth over the past year”
The Charleston economy remains strong, plus so many people relocate to Charleston–especially in the Summer. Our outlook looks good, but we will have to keep an eye on inventory to see how that impacts us.
If you are looking to buy or sell in the Charleston SC real estate market, then it is important you hire the right agent. Learn more about how I can help you with all of your Charleston SC real estate needs.