Finally some good news
February proved to bring great news as the pending home sales index (based on contracts signed in the month) surged 8.2%, the highest monthly rise since October 2001, according to the National Association of Realtors.
NAR’s chief economist, Lawrence Yun said, “The rise in buyer contact activity may signal the early stages of a second surge of home sales this spring. The healthy gain hints home prices are continuing to flatten. We need a second surge to meaningfully draw down inventory and definitively stabilize home values.”
Economists projected February would experience a 1% drop in pending home sales and compared to February 2009, the pending home sales numbers have improved 17%
Jonathan Benya
April 5, 2010 at 3:02 pm
Let’s just hope the trend continues after the tax credits die out and interest rates rise.
Lani Rosales
April 5, 2010 at 4:46 pm
I know some are optimistic, but I’m not so sure that anything other than people being sick of being scared will help us this summer. Or an injection in small business, giving job security to the hurting middle America. We’ll see!!!
Patrick
April 5, 2010 at 5:41 pm
Hey Lani-Great post. I’m curious, what does Mr. Yun consider “Buyer Contact Activity”? I have plenty of “Buyer Contact Activity”!!! I’m looking for some “Buyer Contact Pro-Activity”!!! Just sayin’
Lani Rosales
April 5, 2010 at 11:41 pm
Good question!
Joe Spake
April 5, 2010 at 11:20 pm
When did pending sales take over as the most talked about market indicator? Do pending sales make for a more sunny spin? What ever happened to closed sales?
Are there any stats on the percentage of pending sales that closed in 2009-YTD 2010, compared to, say, 2002-2004?
Austin Homes For Sale
April 6, 2010 at 10:09 am
sad to say but, lots of real estate are really on the brink this days 🙁
Joe Spake
April 6, 2010 at 10:19 am
What’s the definition of “pending sales”, anyway? I suggest that the definition varies by geographical area, brokerage, or even individual agents. And who is responsible for validity of reporting?