The Good News:
The Pending Home Sales Index rose from 75.5 in June to 79.4 in July, a rise of 5.2 percent. The good news is: this is the first rise since April 30th, when the New Home Buyer Tax Credit deadline expired and the market saw a decline in transactions.
Other good news for buyers? Low mortgage rates make homes more affordable. Also, according to Lawrence Yun, the chief economist for the National Association of Realtors, home buyers for the rest of the year will have an “edge over sellers.” He also stated that home buyers over the last year got a “great deal.”
What is the Pending Home Sales Index?
An important statistic in the real estate industry is the Pending Home Sales Index. This number is considering by the National Association of Realtors, the largest trade association in America, to be the leading indicator for the housing sector.
A transaction is considered a Pending Home Sale when the home is in contract, or once the contract between buyer and seller has been signed, but before the transaction has actually closed.
The Bad News:
NAR (National Association of Realtors) advices that this will be a slow recovery, which is not very surpising news and is a fairly consistent prediction.
The Index is also 19.1 percent below July 2009. According to the NAR, annual changes are more meaningful than month to month changes. So, though there has been a rise since last month, the more important comparison is that it is still significantly down from the Index a year ago.
Where does Colorado fit in?
The report issued by NAR did not release data specific to each state, but did offer information by region. The West experienced the greatest increase, with a rise of 11.6 percent to 95.0, well above the national index of 79.4.
Want to take advantage of the low interest rates and large inventory of existing homes for sale? One of our exclusive buyer’s agents can help you find the perfect home for you, and discuss your situation to help you decide if it is the right time for you to buy. To meet one of Colorado’s Exclusive Buyer’s agents, fill out our Find An Agent form.