Jim Guido's Blog

The National Association of Realtors is reporting that pending home sales increased in March and are well above a year ago, another signal the housing market is recovering.

The Pending Home Sales Index,*which is a forward-looking indicator based on contract signings, rose 4.1 percent to 101.4 in March from an upwardly revised 97.4 in February and is 12.8 percent above March 2011 when it was 89.9.  This reported data reflects contracts but not closed sales.

The index is now at the highest level since April 2010 when it reached 111.3.

The report is showing that 2012 could be a year of recovery for housing.  First quarter sales closings were the highest first quarter sales in five years.  This latest news regarding contract signing activity suggests that the second quarter will be equally good.

The PHSI in the Northeast slipped 0.8 percent to 78.2 in March but is 21.1 percent above March 2011.  In the Midwest the index declined 0.9 percent to 93.3 but is 16.9 percent higher than a year ago.  Pending home sales in the South rose 5.9 percent to an index of 114.1 in March and are 10.6 percent above March 2011.  In the West the index increased 8.7 percent in March to 108.0 and is 9.0 percent above a year ago.

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

# # #

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The 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 parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.

Upcoming Social Host Ordinance
Prom and graduation season is the right time for parents to speak to their teenagers about the dangers of illegal drinking. It is well known that anyone under 21 who drinks alcohol in California can be charged criminally. Anyone who furnishes alcohol to a person under the age of 21 can also be prosecuted.

If you are under 21, you cannot legally drink. There is also a law against buying, selling or providing alcohol to anyone underage. Social Host Ordinances go one step further and hold adults accountable for underage drinking on private property.

The Social Host Ordinance will impose administrative fines and charges for public safety response costs for violations. Recalcitrant parents and other responsible persons who repeatedly allow underage drinking parties on their property face large fines in addition to being responsible for cost recovery for each public safety response.

Eight cities and towns in Santa Clara County (Gilroy, Los Altos, Los Gatos, Monte Sereno, Morgan Hill, Palo Alto, Santa Clara and Saratoga) currently have their own Social Host Ordinances.

The proposed San Jose Social Host Ordinance will be going to council on May 15th for Council approval.

The safety of our children is paramount. It is time that we hold adults that provide alcohol and host underage drinking parties responsible.