Today the National Association of Realtors released the Pending Home Sale Index that increased month over month by 6.4 percent, which represents the seventh month of consistent increases in pending sales.
The pending sale index is supposed to be an indicator of future closed sales.
According to the data in the Southeast Florida Multiple Listing Service, the Miami area has realized significant growth in the past twelve months in pending sales as follows:
Those of you that were in the real estate business in Miami last year will never forget the “deep freeze” that we felt in real estate activity in the 4th quarter of 2008. While those deals that were in contract were closing for the most part, the presence of any active buyers in the market practically fell off the cliff.
While I do not consider pending sales in Miami to be an accurate indicator of future closed sales, we cannot deny that the huge growth that we have experienced in buyer activity is consistent the big jump in pending sales.
It is very easy to change a property status to pending sale once an accepted contract is in place, but it is a different story to get that deal to the finish line. Unfortunately, financing remains very tight and is continuing to retract. In fact, as of today Fannie Mae now requires a minimum credit score of 620.
So while our real estate market remains anything but normal and we are exploring completely new territory, the massive increase in pending sales is certainly an indicator that buyers are recognizing value in Miami real estate and confident to step back in.
It was just a few months ago that a cash buyer would have the pick of the litter. In today’s market, get ready to rumble!
For More Information: Are you looking for a Miami or Miami Beach property at a deep discount? Are you looking for a discounted short sale or bank owned property? Ross Milroy of Miami Angel Properties, LLC may be reached at 305-673-5300 or firstname.lastname@example.org