Market Forecast: Case-Shiller Home Price Index, New Home Sales, Pending Home Sales
Posted On February 22, 2021
Mortgage rates trended slightly upward last week, but still remain relatively low. This week, the S&P CoreLogic Case-Shiller home price index is scheduled for release on Tuesday. The new home sales report is scheduled for release on Wednesday, and the pending home sales index is scheduled for release on Thursday.
The Case-Shiller home price index tracks changes in the value of homes involved in two or more sales transactions across 20 major metropolitan areas throughout the country. Though the data lags by a month, it is still used to gauge home price appreciation trends. In November, the index showed a seasonally adjusted appreciation of 1.4% month-over-month and 9.1% year-over-year. The report once again did not have sufficient data from Detroit due to coronavirus-related delays. Among the remaining 19 cities, Phoenix, Seattle, and San Diego had the highest year-over-year gains up 13.8%, 12.7%, and 12.3%, respectively.
The new home sales report tracks the sales of newly constructed homes and accounts for about 10% of total residential real estate transactions. In December, new home sales rose at a seasonally adjusted rate of 842,000. This was a 1.6% increase from the previous month and a 15.2% increase from the previous year.
The pending home sales index tracks changes in the number of homes that are under contract but not yet closed. In December, pending home sales saw a slight drop of 0.3% month-over-month, however, the index reading of 125.5 was still a record high for the month of December. Year-over-year, pending sales were still up 21.4%.
With the spring market just around the corner, sales are likely to pick up in the coming months. As sales increase, so will buyer competition. In order to make stronger offers and stick out from the competition, consider starting your preapproval now by applying online or contacting us today.