Home sales reflect the current demand for the housing market. One of the important leading indicators is the existing home contract pending transfer index, which represents the level at which buyers and sellers have signed contracts but have not yet completed transfer. Since deeds usually include a breach of contract clause that requires payment of damages, the home normally closes in a month or two, so it can be considered a leading indicator of existing home sales. Observing the current situation of the existing home contract pending transfer index, we can find that the index rapidly turned V in June, and its absolute value even exceeded the level in the second half of last year.
It implies that the sales of the U.S. housing telemarketing list market will be strong in the future, and the impact of the epidemic on the sales of the housing market is currently assessed as a short-term impact. unnamed Photo Credit: Finance M Squared Housing market supply and demand observation indicator 5: Single-family new home market index (HMI) The single-family new home market index is a survey of US housing builders. A score greater than 50 indicates that the overall optimistic ratio is greater than the negative, and vice versa.
In the long cycle of the housing market before the epidemic, the indicator was above 50 for a long time, and it quickly rebounded and returned to above 50 after June. It is revealed that builders are still optimistic about the future housing market prospects, and the impact of the epidemic is relatively short-lived. unnamed Photo Credit: Finance M Squared Overall, the oversupply situation in the US housing market has gradually improved since 2009. The housing vacancy rate and housing inventory have fallen to historically low levels in recent years, and the bullish cycle of the housing market started in 2012 is supported by physical supply and demand.