Pending Home Sales Sets a New Record at Eight Consecutive Monthly Rises

News out of my sources at the National Association of Realtors in Washington, DC, report good data for September 2009. Blog and newsletter readers are familiar with the Pending Home Sales Index. The PHS index is a key measurement used to gauge strength in the U.S. housing market. Home sales are “pending” when a sales contract is signed, but the transaction is not officially closed. Typically a home officially closes in 1-2 months of signing.The Pending H.S. Index takes a large U.S. sample usually 20% of existing home sales, and it evaluates sales in 4 regions. An index reading of 100 equals the average level of contract activity that occured in 2001. This was the first year the index was implemented and it was the first of five consecutive years of record sales in existing homes. Use of the “Index” shows trends more accurately looking back 1 year than in a month to month comparison.

The September 2009 Index reading rose 6.1% to 110.1 vs. the August 2009 reading of 103.8. The September ’09 reading is 21.2% above September 2008 which measured 90.9. The gain over 2008 is the largest annual increase on record and the index is at the highest reading since December 2006 when it registered 112.8. Lawrence Yun, NAR Chief Economist feels that current index levels are meaningful. He feels first time home buyers were racing to beat the expiration of the homebuyer tax credit. The credit has recently been extended, but this government stimulus has created a home buying momentum that may assist in stabilizing home prices across the country. Home price stabilization will help the American middle class and aid in a lasting economic recovery. In a look at Pendng Home Sales Index figures across the nation, the Northeast dropped 2.0% to 83.6 in September ’09, but it is 16.9% above September ’08. The Midwest Index increased 8.1% to 98.2 and is 17.8% over September 2008. The South Index is up 4.9% to an index reading of 109.7, this is 22.8% above September ’08. The West index is up 10.2% to 143.8 and is 23.7% above September of last year.

Pending Home Sales Index

NAR’s Yun urges some caution. He feels the market shows good indicators of improvement. However, there is still an over abundance of home inventory on the market and there are lower home price forces coming from an ongoing stream of foreclosures impacting the home market. The history of all investing requires taking on some risk and it is rare to time a top or bottom in any market. Today’s property market has adequate inventory to choose from and mortgage rates are still reasonable. If you are interested in homes for sale in Gatlinburg or other parts of the Great Smoky Mountains, then contact one of the leaders in the area’s real estate. Contact The Jason White Team via phone or on my website to get started finding your property in the Smokies.

                              Here are a Few of My Listings

Home In The Enclave w/ Mountain Views
This custom home has beautiful mountain views with plenty of decking and outside fireplace to enjoy. The spectacular kitchen offers plenty of high end appliances and custom details and the master bath is incredible with tumbled Italian Tile.
Type: Single Family Home
Location: Gatlinburg ,Tennessee
Price: $1,950,000
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Phenomenal 15 Acre Mountain Lodge !!
A mansion vacation retreat like no other. Located in prestigious Chalet Village in Gatlinburg, you won?t believe your eyes when you see this Grand Lodge situated atop a private 15acre estate lot w/270 degree views from Douglas Lake to Mt. LeConte to Ober
Type: Single Family Home
Location: Gatlinburg ,Tennessee
Price: $2,150,000
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Smoky Mountain Stunner!!
This custom built home is truly a one-of-a-kind architectural achievement featuring every amenity & luxury conceivable!
Type: Single Family Home
Location: Gatlinburg, Tennessee
Price: $1,550,000
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