Pending Home Sales Soar | Values Heading Higher

Filed under Pending Home Sales by on April 6, 2010 at 7:47 am {no comments}

As expected, the shot higher in February, boosted by the federal ’s April 30 deadline.

Versus the month prior, February’s index rose 8 percent but remains well off the highs set last October.

For today’s home buyers and seller, the is an important measurement. This is because a “pending home” is a property that is under contract to sell, but not yet closed.

According to the National Association of Realtors®, 80% of homes under contract close within 60 days, historically. Therefore, a higher Pending Sales figure in February projects that April’s Existing Home Sales will be higher, too.

If you’re a home buyer today, no doubt you’ve noticed the extra market activity.

On right-priced homes, multiple offer situations are more common; sales prices are settling closer to listing price; Days on market is falling. These are the signs of a buyer-heavy market.  It drives down and home prices up.

It’s a good time to be a seller, in other words.  Especially as buyer activity looks poised to peak.

When the home buyer credit faced its last expiration in November 2009, we saw a pattern of buyers rushing to beat the deadline.  There’s no reason to expect that won’t happen again. And as it does, Pending Home Sales should continue to climb. Average home sale prices should rise.

Home buyers may find it smart to go under contract sooner rather than later. Pending Home Sales is a warning shot.  Higher home sales figures are ahead.

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Home Supply Indicates A Few Extra “Good Deals”

Filed under New Home Sales by on February 25, 2010 at 7:47 am {no comments}

dropped last month by 11% and hit the lowest levels in the 47 years that the index has been tracked.

This is great news for current home shoppers.  The was rallying all year, pushing the home supply down to 7 months by last October.  Supply was down, demand was up, and the best deals on homes were all turning into multiple offer situations in many markets.

We’re seeing continued general strength in the housing market, but last month’s data revealed a brief pause.  Additional supply should lead to better negotiating power for buyers and more favorable terms on items like closing costs concessions and free upgrades from builders.

The reasons for the spike in supply are varied:

  • The original expired in November
  • Weather conditions were awful in most of the country in January
  • Weak employment and consumer confidence continue to hinder big ticket sales

The is all a matter of timing.  This data is over a month old now.  Market conditions in the street today determine the price you’ll get today. Still, this is great timing for people making offers in the very short term.  Next month’s report will likely look a little better.

With the tax credit expiring, FHA interest rates rallying, and a generally improving housing market, it looks like a great time to buy.

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