The number of homes In Salt Lake under contract to sell is rising, another signal that the housing market may be regaining its footing.
As reported by an industry trade group, the Pending Home Sales Index gained 2 percent in February. The report measures MLS-listed homes in "pending" status -- sold but not yet closed.
By comparison, Salt Lake Homes for Sale throughout the County that are listed as homes under contract have increased by 12% over the first of the year.
There are 194 more homes or condominiums In Salt Lake that are waiting to close than there were 120 days ago.
Pending Home Sales is not a perfect statistic, though, by any means.
For one, the Pending Home Sales Index doesn't account for non-MLS listed homes including For Sale By Owner properties and mass foreclosure auctions. In certain markets nationwide, these two categories represent a large percentage of the overall transaction volume.
Likewise many Salt Lake Builders do not list new spec homes on the MLS until they are in danger of foreclosure.
But most importantly, a "pending" home sale is not the same as a closed home sale. A lot of things can go wrong between the time a home goes under contract and the supposed closing date. For example, the home inspection could fail, the contract could fall apart, and/or the buyer's financing could be denied in underwriting.
All things equal, though, Pending Home Sales is a fair forward-looking indicator for the housing market as a measurement of buy-side demand for homes.
When Pending Home Sales rise, it's tells us that buyers and sellers are matching up, clearing out market inventory. And actual home sales often follow "pending" ones -- 80 percent of Pending Home Sales will close within 60 days.
To track home sales in Salt Lake, visit our website Salt Lake Real Estate.
If you want to see all of the homes for sale in Utah as well as the Salt Lake Valley click on SLC Homes For Sale. You can access thousands of Utah Homes and Condominiums, and all of the Homes for Sale In Salt Lake City.