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 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 home supplies 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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Pending Home Sales Recover

Filed under Pending Home Sales by on February 3, 2010 at 7:47 am {no comments}

recovered by 1% in December after November’s big drop.

A Pending Home Sale is a home under contract, but not yet closed. It’s compiled using over 60 large brokerages and over 100 regional data listing services and is considered to be one of the best indicators of home sales activity.

As such, it’s pretty accurate in projecting forward-looking housing reports.  Notably, with the data showing a moderate tick up on Pending Home Sales in December, it’s reasonable that we should see a tick up in in January.

With the first time ending soon, FHA interest rates likely to go up, and now housing looking like it is going to resume its upward trend, the time to buy might be now.

For home buyers in Chicago , this is all a bit of good news. Home prices are based on the supply-and-demand balance that exists between buyers and sellers.  When buyers outnumber sellers, like they did through most of 2009, home supplies dip and, in fact, the national home inventory nearly halved during the 12 months ending November 2009.

With fewer homes for sale, multiple-offer situations were almost commonplace and home values rose as result.

Activity has since slowed, however, and fewer buyers are in today’s market. The supply-and-demand equation has shifted back some. In December, home supplies rose for the first time in 7 months and January will likely show the same.

The net result: Home buyers have more homes from which to choose and that can create negotiation leverage for better prices and better concessions.

With still low and a looming deadline on the homebuyer’s tax credit, market activity should be strong between now and April.   Take your time and bid right. And when you’re ready, be ready. The best deals likely won’t last.

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