One more day, an additional powerful report for housing.
The Pending Property Sales Index climbed two % in December, according to the National Association of REALTORS. A “pending property sale” is an existing property under contract to sell, but not yet closed.
Pending Residence Sales are up for the fifth time in 6 months. The December reading is now its highest since the federal home buyer tax credit’s April 2010 contract deadline, and the figure is well north of the Pending Home Sales Index 3-year average.
Coupling this data with December’s powerful Existing Homes Sales report (+12%) and its powerful New House Sales report (+17%), it is clear that the housing marketplace has past its trough and is in Recovery Mode.
Even consumer confidence is at an 8-month high.
On a regional basis, December’s Pending Property Sales Index varied as compared against November. The South region led the way, and the West region lagged.
* Northeast Region: +1.8% * Midwest Region : +8.0% * South Region : +11.5% * West Region : -13.2%
Home buyers in regions like Pacific Beach would do nicely to study last month’s Pending Property Sales Index. It provides clues of what to anticipate throughout the spring acquiring season. For instance, according to the National Association of REALTORS, 80 % of homes beneath contract close inside 60 days.
As a result, we are able to appear at the December Pending Home Sales Index and project, with a high degree of confidence, that property sales is going to be increased throughout February and March on a units-basis.
Furthermore, simply because the Existing Property Sales and New Home Sales reports show that housing stock is falling nationwide, spring buyers in San Diego will notice discover far more competitors for the offered housing stock. As the Supply-and-Demand curve shifts towards sellers, home costs rise.
In other words, there’s no rush to purchase a property, but as the year progresses, house prices are expected to rise, as are mortgage rates. This one-two mixture will influence residence affordability negatively. As well as the higher that mortgage rates go, the worse the damage.
Your home-buying dollar won’t go as far in 2011′s second half as it will go at this time. In the event you have plans to purchase a house in 2011, think about moving up your time-frame.
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