Existing Home Sales Indicate A Busy Spring

As expected, the February Home Sales figure dipped relative to January.  It’s four straight months of lower month-over-month totals.  However, it’s actually pointing towards rising values.

November of 2009 was an exception.  The expiration of the first time home buyer tax credit flooded the market with buyers.  These were buyers that would have ordinarily been more evenly distributed through the winter months, instead, that “December-February” buyer bought sooner.

The trends and moving averages all point towards continued momentum in the real estate recovery.

The rumor that the market is soft may not last much longer.  When the first time home buyer credit was extended until April 30th, it created a spot for another huge spike in buyer traffic.  Buyer traffic means multiple offer situations and that means less power in negotiating.

The Existing Home Sales report is based on February’s closings which is really a reflection of buyer traffic in December and January.   The reality of today’s market is that there are more buyers than the stats are tracking.

Existing Home Sales should gain through March and April, pressuring home prices higher. And, by the time the press reports the gains, the best deals may already be gone.  Consider acting sooner rather than later.