Joe Moshe, Broker/Owner, Charles Rutenberg Realty, says the upward swing in the pending home sales index (PHSI) in May shows the housing market may be rebounding and, with the recent increase in home prices, this trend may extend into the summer months.
The National Association of REALTORS reported that the PHSI during the month of May rose by 8.2% to 88.8, compared to an upwardly revised figure of 82.1 in April. It is also a 13.4% increase over the May 2010 figure of 78.3, marking the first time in eleven months that contract activity was above levels from 12 months ago. According to the NAR, this is the seventh time in 11 months that the PHSI has seen gains. (These figures do not reflect the number of closings.)
"Many homebuyers took advantage of the low sales prices and made the move to buy a house," Mr. Moshe said. "Many economists expected a recovery, but this exceeded their expectations. Almost half of the states reported drops in unemployment, which is a good sign for the housing market and is an indication that the housing market is bound to recover."
With the recent increase in home sale prices, Mr. Moshe says the housing market might have hit bottom and is finding its way back up. "There were concerns that the drop in home sale prices might result in a double-dip recession," he said. "I foresee a recovery happening, albeit slowly, this summer. However, some banks are still being tight with their credit, which is preventing deserving borrowers a chance to buy a house and the housing market from further improving. The black cloud that still looms over us is the phantom inventory of bank-owned properties which have still not yet been completely released."
Charles Rutenberg Realty is one of the nation's fastest-growing Agencies with more than 1,300 Agents on Long Island, Queens, Westchester, and the New York metro area. For more information, call (516) 575-7500, or visit www.crrli.com.
About Charles Rutenberg Realty
Founded in 2006, Charles Rutenberg Realty of New York is one of the nation's fastest-growing, most progressive Real Estate Agencies with over 1,300 Agents on Long Island, Queens and Westchester. Charles Rutenberg Realty specializes in residential properties in Nassau, Suffolk, Queens, Kings and Westchester Counties. Among the 1,900 independent Real Estate offices represented by Multiple Listing Services (MLS), Charles Rutenberg Realty has the highest market share for available inventory, listings taken for the first six months of the year and listings under contract. Its Agents are trained in the latest creative marketing programs and can fulfill all their clients' financial and personal needs when buying or selling a home. Charles Rutenberg Realty is headquartered in Plainview, New York, with offices in New York City, Florida and Illinois. For more information, call (516) 575-7500 or visit www.crrli.com.