Pending Home Sales Rise in June

Pending Home Sales Rise in June

RISMEDIA, Monday, August 01, 2011— Pending home sales increased in June following a wide swing down in April and then up in May, according to the National Association of REALTORS®. Activity increased in the West and South but declined in the Midwest and Northeast; all regions show strong double-digit gains from a year ago.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 2.4 percent to 90.9 in June from 88.8 in May and is 19.8 percent above the 75.9 reading in June 2010, which was the low point immediately following expiration of the home buyer tax credit. The data reflects contracts but not closings.

Lawrence Yun, NAR chief economist, said there may be some increase in closed existing-home sales. “For the majority of transactions, the lag time between pending contacts to actual closings is one to two months. Therefore, the two consecutive months of rising activity should lead to overall improvement in closed sales in upcoming months,” he said. “Though a higher than normal cancellation rate can hold back final closing figures, it could well be that some past cancellations are nothing more than delayed buying decisions rather than outright cancellations.”

Yun said tight credit and economic uncertainty have been constricting the market. “The best way to ensure a more solid recovery in housing is to simply return to normal, sound credit standards so more creditworthy home buyers can get a mortgage,” he said.
“Washington also should not rock the boat with policy changes that would negatively impact affordable credit or otherwise increase the cost of buying or owning a home,” Yun added.

The PHSI in the Northeast slipped 0.4 percent to 68.9 in June but is 19.4 percent higher than June 2010. In the Midwest the index fell 3.7 percent to 79.7 in June but is 26.4 percent above a year ago. Pending home sales in the South increased 4.4 percent to an index of 99.2 and are 19.1 percent higher than June 2010. In the West the index rose 6.4 percent to 107.0 in June and is 16.4 percent above a year ago.

Existing-home sales this year are expected to total 5.0 million, slightly higher than 2010. Similarly, little change is forecast for aggregate home prices with several indicators, including NAR’s median prices, showing recent signs of stabilization.

Main Linw Real Estate Why To Buy A Home

Why would anyone want to own a home??? That is the one question when something breaks in my house. It drives me crazy. I swear I will never own again and think about how nice it would be the live in a rental and the just call the supervisor if something broke. But then I would have no control on when it would be fixed!!! Oh sure like I have a lot of control over when a plumber or an electrician will magically appear. We had a rain storm a few days ago and I was worried if the foundation leak that I had repaired 3 years ago would be leaking again. It is like I have some sort post stress disorder. What makes it worse is that I am a Realtor.
I sell a dream, a lifestyle. We buy these homes because we are getting married, got a raise or having a baby. The reasons are numerous. But what is this crazy nesting syndrome that we have. Don’t get me wrong, I love houses. I love looking at them, feeling them, breathing in their odors and trying to figure out what is cause. I love to visualize what they offer to a family. How they would look once they are cleaned and updated. It is my job to find the perfect house and trust me I can look forever. However didn’t all start in Levittown after the war “Buy the American Dream” home ownership? Don’t we just need a tarp over our heads? Well not exactly. It is a place here we realize our dreams can come true. It is where we listen to music, become creative, rest our bodies and soul and plan for the future. A home becomes an extension of who we are.