Pending Home Sales Rise To 22-Month High

Pending Home Sales Index 2011-2012The Atlanta housing market appears headed for a strong spring season.  This exciting news for home sellers in the Atlanta market.  Home buyers are still finding great deals, but not sure how long that might last.

After a brief setback in December, the Pending Home Sales Index resumed its climb in January, posting a 2 percent gain over the month prior.

The data puts pressure on Atlanta home buyers. This is because a “pending home” is a home that’s under contract to sell, but has not yet sold. It’s tracked by the National Association of REALTORS® and, among all housing statistics, it’s the only one that’s “forward-looking”.

The Pending Home Sales Index is important to home buyers throughout GA because 80% of homes under contract to sell close within 60 days of contract. In this way, the Pending Home Sales Index forecasts the housing market 1-2 months into the future.

This is very different from how NAR’s Existing Home Sales report works; or, how the Census Bureau’s New Home Sales report works. These two metrics tell us what’s already happened in housing.

By contrast, the Pending Home Sales Index tells us what’s coming next.

January’s Pending Home Sales Index reading lifts the monthly metric to its highest level since April 2010 — the month during which the 2010 federal home buyer tax credit expired — foreshadowing a strong housing market through March and April 2012, at least.

This should not be news, of course. The nation’s home builders have said “foot traffic” is rising and home supplies are scarce nationwide. The only wild-card for housing is the high contract cancellation rate.

As compared to last January when just 9 percent of home purchase contracts “failed”, this January saw 33 percent of contracts fail. High failure rates undermine the Pending Home Sales Index’s viability as a forward-looking housing market indicator.

Despite contract failures, though, the combination of low mortgage rates and low home prices is enticing to today’s Atlanta home buyers. Expect Atlanta home sales to climb in the coming weeks which will lead to a strong spring season for housing. 

Do us a favor if you or someone you know is about to buy that perfect home, please recommend us to them. When you find your dream home, make sure that you get a thorough home inspection in Atlanta, GA from the home inspector Atlanta, GA, David & Bonnie Lelak of IHI Home Inspections, they serve Atlanta and all of North Georgia. Call us today at 404-788-2581 for a thorough home inspection in Atlanta. We won’t let you buy the money pit.  You can also schedule your Atlanta home inspection today online.  We create Peace of Mind One Atlanta home inspection at a time.  Be sure to check out all the other reasons other customers chose IHI Home Inspections at our original website. 

High Demand on Existing Homes Provides Positive Outlook

Existing home supply

An “existing home” is one that’s been previously occupied and cannot be categorized as new construction. As Atlanta home inspection  providers we see several of both types of homes. Due to the populated areas where we provide home inspections in Atlanta, Ga there is a continuous flow of buyers in “existing home” transactions. Could this be an indicator that a housing recovery is beginning nationwide?

According to the National Association of REALTORS®, the January 2012 Existing Home Sales showed  a 4 percent increase as compared to December’s revised figures. There was also a 20-month high in home resales during this January’s reports.

The good news is that demand is high in Canton, Woodstock, Roswell, Kennesaw and other surrounding cities not only for home sales, but for the services needed to complete real estate transactions. This would indicate that Marietta home inspections are on the rise, as well.  There is still a positive outlook for those who wish to sell their  homes.  Since housing stock is at a 5 year low, the demand is higher than the supply, which makes for a higher price on the homes. Higher price on the homes, means more money in the seller’s pockets.

Interestingly enough,  at the current pace of sales, today’s complete home inventory would “sell out” in 6.1 months.

Analysts say that a 6-month supply is a market in balance. Anything less is Bull Market territory.

As contract failures subside, Existing Home Sales are expected to rise even faster. Many buyers have tried to buy but could not for reasons such as: appraisals coming in lower than contract pricing, home inspection issues that could not be negotiated, and mortgage denials.

First-time buyers continue to power the home resale market. In January, 33% of all sales were made to first-time buyers, up four points from last year. This statistic suggests that renters are moving into homeownership, an important component in a sustained housing market recovery.

Given high demand and shrinking supply, we should expect for Bradshaw Farms, Bridgemill, and Harmony on the Lakes  home prices to rise in the coming months, if they haven’t already. Thankfully, mortgage rates remain near all-time lows.

Do us a favor if you or someone you know is about to buy that perfect home, please recommend us to them. When you find your dream home, make sure that you get a thorough home inspection in Atlanta, GA from the home inspector Atlanta, GA, David Lelak of IHI Home Inspections, they serve Atlanta and all of North Georgia. Call us today at 404-788-2581 for a thorough home inspection in Atlanta. We won’t let you buy the money pit.  You can also schedule your Atlanta home inspection today online.  We create Peace of Mind One Atlanta home inspection at a time.  Be sure to check out all the other reasons other customers chose IHI Home Inspections at our original website. 

 

Existing Home Sales Approach Bull Market Territory

As a home inspector in Atlanta GA and as a resident as well, we are happy to be seeing a busy market.  If you’re looking to buy or sell, right now may be the best time.  Looking for a great real estate agent in Atlanta GA to work with, give us a call we know several.  We are noticing the housing market finished 2011 with strength, and is carrying measurable momentum into 2012, based on number of home inspections in Atlanta that we alone provided.  Seems local real estate experts are busy across the board. 

According to data from the National Association of REALTORS®, on a seasonally-adjusted, annualized basis, December’s Existing Home Sales climbed by 120,00 units overall from the month prior on its way to an 11-month high.

An “existing home” is a home that’s been previously occupied; that cannot be considered new construction.

After 4.61 million existing homes were sold in December, there are now just 2.38 million homes for sale nationwide. The last time the national home supply was this sparse was March 2005.

At today’s sales pace, the complete, national home inventory would be exhausted in 6.2 months — the fastest pace since before the recession. A 6.0-month supply is believed to represent a market in balance. 

The December Existing Home Sales report contained noteworthy foreclosure and short sale statistics, too :

  • Foreclosures sold at an average discount of 22% to market value
  • Short sales sold at an average discount of 13% to market value
  • Together, foreclosures and short sales accounted for 32% of all home sales

Clearly, “distressed homes” remain a large part of the U.S. housing market.

Furthermore, in its report, the real estate trade group also noted that one-third of homes under contract to sell nationwide succumbed to contract failure last month. That’s up from 9% one year ago.

Contract failure occurs for a multitude of reasons, most notably homes appraising for less than the purchase price; the buyer’s failure to achieve a mortgage approval; and, insurmountable home inspection issues. December’s high failure rate underscores the importance of getting pre-approved as a buyer, and of buying homes in “good condition”.

For today’s home buyer in Canton , December’s Existing Home Sales figures may be construed as a “buy signal”. Home supplies are dropping and buyer demand is rising. This is the basic recipe for higher home prices ahead.

If your 2012 plans call for buying a home, consider that home values throughout GA are expected to rise as the year progresses. The best values of the year may be the ones secured this winter.

Do us a favor if you or someone you know is about to buy that perfect home, please recommend us to them. When you find your dream home, make sure that you get a thorough home inspection in Atlanta, GA from the home inspector Atlanta, GA, David & Bonnie Lelak of IHI Home Inspections, they serve Atlanta and all of North Georgia. Call us today at 404-788-2581 for a thorough home inspection in Atlanta. We won’t let you buy the money pit.  You can also schedule your Atlanta home inspection today online.  We create Peace of Mind One Atlanta home inspection at a time.  Be sure to check out all the other reasons other customers chose IHI Home Inspections at our original website. 

Pending Home Sales Index Rises Back Above 100

Pending Home Sales IndexLow home prices and mortgage rates have combined to push home affordability to record levels nationwide. Home buyers are taking advantage.

The Pending Home Sales Index rose 7 percent in November to rise to its highest level since April 2010, the last month of last year’s home buyer tax credit program. 

The Pending Home Sales Index is published monthly by the National Association of REALTORS®. It measures homes under contract nationwide, but not yet “sold”. 

In this way, the Pending Home Sales Index is different from other housing market indicators. It’s a “forward-looking” figure; a predictor of future home sales. According to the National Association of REALTORS®, more than 80% of homes under contract close within 60 days. 

By contrast, housing data such as the Existing Home Sales report and the New Home Sales report “look back”.

November marks the second straight month of Pending Home Sales Index improvement. The housing market metric made big gains of 10 percent in October 2011, as well.

On a regional basis, each part of the country showed an increase in homes under contract.

  • Northeast Region: +8.1 percent from October 2011
  • Midwest Region : +3.3 percent from October 2011 
  • South Region : +4.3 percent from October 2011
  • West Region : +14.9 percent from October 2011

However, here in Canton, we must discount the value of even the regional data, somewhat. Like else in real estate, the volume of homes going under contract vary by locality.

Throughout the West Region, for example, the region in which pending home sales increased the most from October, there are nearly a dozen states. Undoubtedly, some of those states performed better than others in terms of “homes under contract”, but we don’t have an indication of which states those were.

In addition, within each state, every city, town, and neighborhood realized its own unique market in November, and produced its own sales statistics.

For buyers and sellers throughout GA and the country, therefore, it’s more important to watch data on a local level than on a national one. Reports like the Pending Home Sales Index are helpful in showing national trends, but as an individual, what you need are local trends.

For local real estate data, be sure to ask your agent.

Home Sales Rise in November; Still Lower Than a Year ago

Existing Home Supply 2010-2011

If you are searching the Atlanta Real Estate market, don’t get discouraged by all of the statistics. The Atlanta Home Inspection crew came across these recent figures, which do show November resales creeping up the chart, even though they are not at the same level of sales as last year.

Home resales moved to a 10-month high in November, the latest in a series of strong showings from the housing sector.

According to the National Association of REALTORS®, November’s Existing Home Sales rose to a seasonally-adjusted, annualized 4.42 million units nationwide —  a 4 percent climb from October 2011.

An “existing home” is a home that has been previously occupied and cannot be categorized as new construction.

Home buyers and sellers throughout Atlanta should take note of November’s numbers because — behind the headlines — there’s a series of statistics that foretell higher home prices ahead.

First, the total number of homes for sale nationwide dipped to 2.58 million, an 18% reduction from November 2010 and represents the fewest number of homes for sale since February 2007. 

At the current sales pace, the complete home resale inventory would be sold in 7.0 months.

And, second, the real estate trade group reports that 33% of all homes under contract “failed” for some reason last month.

Contract failures can occur because of mortgage denials in underwriting; home inspection issues; and homes appraising for less than their respective purchase prices.

In other words, despite a reduction in the number of homes for sale, and a rash of failed contracts, Existing Home Sales volume is still on the rise.

Broken-down by buyer-type, here’s to whom home sellers were selling in November :

  • First-time buyers : 35% of home resales, up from 34% in October 2011
  • Repeat buyers : 46% of home resales, down from 48% in October 2011
  • Investor buyers : 19% of home resales, up from 18% in October 2011

Given high demand for home resales and shrinking home supplies, we should expect that Bradshaw Farms home prices will rise through December 2011 and into early-2012, at least. Recent Housing Starts data supports this notion. 

Thankfully, mortgage rates remain low. Low mortgage rates help keep homes affordable.

Do us a favor if you or someone you know is about to buy that perfect home, please recommend us to them. When you find your dream home, make sure that you get a thorough home inspection in Atlanta, GA from the home inspector Atlanta, GA, David & Bonnie Lelak of IHI Home Inspections, they serve Atlanta and all of North Georgia. Call us today at 404-788-2581 for a thorough home inspection in Atlanta. We won’t let you buy the money pit.  You can also schedule your Atlanta home inspection today online.  We create Peace of Mind One Atlanta home inspection at a time.  Be sure to check out all the other reasons other customers chose IHI Home Inspections at our original website.