Florida Home Loans on the Rise: Pending Home Sales Index Increases

As buyers and sellers equally bask in the balanced Florida housing market, further news is emphasizing the belief that the sector is in for a nice, soft landing.

Economic data released last week shows that more and more individuals are getting involved in the real estate market. According to The National Association of Realtors, its index for pending sales of existing homes increased at a seasonally adjusted annual rate of 1.3%, to 113.4 in May.

While these figures are lower than a year ago, the reading’s monthly gain suggests that the housing sector - a key contributor to the economy - is cooling gently. This goes along with the halt is significant interest rate increases recently and the boost in Florida home loan demand.

“The slight change in pending home sales indicates the market is beginning to level out,” said David Lereah, the NAR’s chief economist. “This is consistent with our forecast, which is showing a soft landing for the housing sector.”

The NAR index of pending home sales is based on contracts signed in May for the sale of existing homes, including single-family units and condominiums. A home sale is pending when the contract has been signed but the transaction hasn’t closed.

As fears regarding inflation subside and Florida home loan rates ease up, these numbers should continue to reflect a healthy industry. It’s good news for anyone looking to move to - or invest in - the Sunshine State.