Karla Lindstrom, REALTOR® (530) 867-6812 www.karlalindstrom.com Century 21 Trongo and Assoc., Inc. 221 W. Main St. Woodland, Ca. 95695 Office: (530) 662-2121 x 106 Fax: (530) 662-7778 Friendly, Helpful, Straightforward Member of: National Association of REALTOR®s California Association of REALTOR®s Yolo County Board of REALTOR®s Exodus Network Group, Select Member Woodland Sunrise Rotary Club Calvary Baptist Church

Pending Home Sales Index Hits Record  

WASHINGTON (October 5, 2005) – Pending home sales have risen to a record level, defying some expectations of a cooling market, according to the National Association of Realtors^®.  

The Pending Home Sales Index,* based on contracts signed in August, rose 3.2 percent to a reading of 129.5, and is 4.7 percent higher than August 2004. The previous record was 128.1 in October 2004. 

The index, which is a leading indicator for the housing sector, is derived from pending sales of existing homes. A sale is described as pending when the contract has been signed but the transaction has not been finalized. Pending home sales typically close within one or two months of signing. 

David Lereah, NAR’s chief economist, said strong demand and favorable market conditions are driving home sales, but the cloud of Hurricane Katrina is hanging over some of the data. “Home sales remain at remarkable levels, but there is ambiguity regarding pending home sales in parts of the South since many transactions in the disaster zone will be postponed. It’s unclear how much of that disruption may be offset by spiking sales in surrounding areas,” he said. “Even so, national sales should stay close to record levels over the next two months and housing will continue to support the economy.” 

Direct data from many hard-hit areas will be unavailable until affected multiple listing services are restored to operation. An estimated 28,000 Realtors^® lost homes and businesses in Katrina. The Realtors^® Relief Foundation has collected nearly $4.8 million to provide emergency relief for hurricane victims. Funds are targeted for homeowners and affected NAR members alike. 

A Pending Home Sales Index of 100 is equal to the average level of contract activity during 2001, the first year to be analyzed, and was the first of four consecutive record years for existing-home sales. Sales in 2001 were fairly close to the higher volume of home sales expected in the coming decade, well above the levels that were seen in the mid-1990s, so an index of 100 is considered to be historically strong. 

Regionally, the PHSI in the West rose 7.6 percent to 136.7 in August and was 8.7 percent higher than August 2004. The index in the Midwest increased 2.8 percent to a level of 119.4, and was 0.5 above a year ago. In the South, the index rose 2.2 percent to 142.1, and was 7.6 percent higher than August 2004. The Northeast index declined 0.5 percent to 108.5 in August, and was 2.2 percent lower than a year ago. 

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1 million members involved in all aspects of the residential and commercial real estate industries.

* The Pending Home Sales Index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 closely parallels the level of closed existing-home sales in the following two months. 

Existing-home sales for September will be released October 25; the next Pending Home Sales Index will be on November 3. 

Hurricane Katrina Relief Fund

REALTOR®s Relief Foundation Al Mansell, President, NAR Did you know that 10,431 REALTOR®s have generously contributed to the REALTOR®s Relief Foundation? The NAR, National Association of REALTOR®s, have raised more than $4 million, and altoghether the real estate industry as a whole has given more than $8 million to help Hurricane Katrina victims.

REALTOR® contributions are making a tremendous impact on those affected, but it’s clear that more will be needed. REALTOR® Relief Foundation funds are being distributed directly to relief funds established by REALTOR® associations in Louisiana, Alabama and Mississippi. The donations are getting through to REALTOR®s who badly need help. Our associations are working overtime to cut checks for thousands of people who need emergency assistance and more are coming in every day. They are contacting REALTOR®s in counties most heavily affected by the hurricane to make sure they reach every member who needs help. The overall impact of Katrina on the region’s real estate industry is still hard to assess, but the total requests for emergency assistance are already in the millions and will continue to grow.

REALTOR® contributions are making a tremendous impact on those affected, but it’s clear that more will be needed. We haven’t raised enough to meet the needs we anticipate. We need to raise more so that we don’t have to turn anyone away.

Can you help? EVERY PENNY donated will go directly to help victims of Hurricane Katrina get back on their feet. You can find out more about the REALTOR®s Relief Foundation at: http://realtor.org/realtororg.nsf/pages/katrina

To contribute by mail, checks should be made payable to the REALTOR®s Relief Fund and sent to:
NAR
Attn: NAR Finance Division
430 N. Michigan Ave.
Chicago IL 60611.