Real Estate Articles
REALTOR®: June Pending Home Sales Index shows improvement in housing market around the nation
Pictured left to right: SILVAR Director Dave Tonna, Interim Executive Officer Paul Cardus, Immediate Past President John Tripp, Director Jeff Bell, Coldwell Banker President and COO Joe Brown and Los Gatos/Saratoga District Chair Brian Crane.
The National Association of REALTORS® (NAR) reports June's Pending Home Sales Index was 5 percent higher from the downwardly revised May index of 97.5, but is 8.6 percent below June 2006, when it stood at 112.0. This 5 percent monthly gain is the largest in more than three years, since a 6.1 percent increase in March 2004.
Lawrence Yun, NAR senior economist, said it is encouraging that the increase occurred in all four major regions. "However, it is too early to say if home sales have already passed bottom," he said. "Still, major declines in home sales are likely to have occurred already and further declines, if any, are likely to be modest given the accumulating pent-up demand."
The index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. The PHSI in the West increased 8.6 percent in June to 103.6, but was 5.5 percent below a year ago. In the Northeast, the index rose 3.1 percent from May to 96, but is 2.4 percent lower than June 2006. The index in the South increased 4.7 percent in June to 111.6 but was 12.7 percent below a year ago. In the Midwest, the index rose 3.5 percent in June to 92.5, but was 8.2 percent lower than June 2006.
At a June Silicon Valley Association of REALTORS® (SILVAR) tour meeting, Joe Brown, president and chief operating officer of Coldwell Banker Residential Brokerage, Silicon Valley's largest real estate firm, was optimistic about Silicon Valley's housing market, and he reminded SILVAR Realtors that while Realtors, buyers/sellers are important parties in a transaction, there are other parties that have a direct influence in the total picture and are an integral part of a smooth and successful real estate transaction. They are the affiliates - the title insurers, lending institution officers, builders, surveyors, contractors, inspectors, attorneys. They represent businesses like mortgage companies, home inspectors, newspapers, title companies and pest control companies.
"These are the people that make it happen," said Brown, as he asked the affiliates to stand up and be recognized.
Brown also indicated all real estate companies play a hand in the success of the industry, noting competition is healthy and "keeps everyone on their toes."
Brown is a 26-year real estate veteran, who has lived and worked in the San Jose area most of his life. He oversees 14 offices and more than 1,100 sales associates. He assumed the position of president and COO in April, 2006. Prior to that, he served as managing broker of the company's San Jose Main and Willow Glen offices.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.