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If you’re looking to buy or sell a home, now could be the ideal time, and El Dorado Hills is a fantastic place to start!

Many homeowners were concerned about pending house purchases in April. The National Association of Realtors’ Pending Home Sales Index fell roughly 4% from the prior month at what would otherwise be a peak in the spring market. Instead, every analyst consensus’ estimate we could locate was well off the mark.

This month, they’re off again, but the industry’s reaction is likely to be considerably different. Rather than the 0.8% and 25 drops predicted by economists surveyed by Econoday and Trading Economics, May’s Pending Home Sales Index surged 8% higher than April and 13.1% higher than May 2020.

The index achieved 114.7 points based on contracts made to buy existing single-family homes, townhouses, condominiums and cooperative flats. This was the highest May reading since 2005, per the National Association of Realtors. The index is a leading indicator, which means it can forecast existing house sales for the next one or two months. In addition, the number of contracts signed increased in each of the four major areas.

Regardless of the difficulties of the previous year, record-low stocks and record-high prices, purchasers are still lining up at a rapid pace. While these obstacles have pushed some would-be purchasers away, the country’s record-high aggregate wealth is supplying cash for home purchases due to the stock market’s rise and growing property prices. In addition, the end of the government mortgage forbearance program and increased house construction will result in more market listings in the second half of 2021.

Home price increase should gradually slow with more supply, but a widespread and long-term price drop is improbable. However, if house prices fall in some regions, purchasers will see the reduced price as a second chance to enter the market after being outbid in prior multiple-bid situations.