Pending Home Sales Is On A Record Streak

Posted by Gatlin on

sale-pendingIn news out of the nation’s capital, I was delighted to read that pending home sales have increased for the seventh straight  month. Sources for this information were;  Charles McMillian, President , and Lawrence Yun, Chief Economist, of the National Association of Realtors. The National Association of Realtors represents1.2 million members of all segments making up residential and commercial real estate in America. It is also the largest trade association in the United States. For recent viewers of my blog, the data we are analyzing involves figures from the Pending Home Sales Index. This index was first used in 2001 and is derived from a large national sample. Typically the “Index” looks at approximately 20% of all pending home sales across America. A home sale is pending when contracts are signed, but the official closing has not occurred. Usually the transaction is finalized within 1-2 months of pending status.

 

 

Figures for the Pending Home Sales Index showed the following results:

 

phs-index1

*A Pending Home Sales Index reading of 100 is equal to the average level of home sales contrast activity during 2001. (2001 was the first year the index was used and it was the first of 5 consecutive record years in sales of existing homes).

 

This seven month run of increasing levels in pending home sales is important because it has never occurred since the “Index” was utilized in realty-sales calculations. The overall PHS Index results comparison; August 2009 Index reading-103.8* up 6.4%, and from July 2009 at 97.6* up 12.4% vs. August 2008 at 92.4. (*Highest index level recorded was March 2007 at 104.5). As a real estate professional, this is great news.

 

However, the article also advised people to be cautious and I want to urge my blog readers to do the same. Here are some potential roadblocks to a full recovery in real estate. First, the deadline for the $8,000 tax credit for new homebuyers is rapidly approaching. Due to time lag in the pending vs. closing process, this October’s close will probably be the end for new home buyers rushing to purchase a house. This new homebuyer tax credit has amped up home buying and unless it gets extended in some fashion, house purchases could decline. A second potential roadblock is the extended delays for final closing caused by foreclosures and short sales. The lengthy delays here have sometimes resulted in buyers signing another contract for a different property. Other factors like; excess inventory of homes for sale, delays in the foreclosure process, new federal guidelines, etc. could have unseen consequences for real estate.

 

Still, there are many reasons to consider buying or selling real estate in today’s economy. Here are some to consider. Real estate is a hard asset that holds value when currency supply and valuations fluctuate. Selling a property could free up cash for a real estate upgrade. The current inventory of new and existing homes gives today’s buyer a better selection than we have seen for some time. These are just a few reasons to consider real estate sale or purchase at this time.  For buying or selling real estate in the Smokies contract The Jason White Team for dependable professional guidance on your property adventure.

 

                Huge Reductions On Two Prime Properties!!    

Estate Home on Lake-Front Peninsula!!   Reduced $305,000!!
Custom built home on Lake-Front Peninsula with expansive views of Flat Creek and surrounding ridges. Estate style gardens complete with gazebo, commercial outdoor kitchen, and koi pond.
Type: Single Family Home
Location: Sevierville,TN
Price: $1,195,000
Get more information >
Hand Crafted Quality And Stunning View!  Reduced $102,900!!
If you want peace and tranquility with stunning mountain views, this home is for you! It offers hand crafted quality along with a thoughtful design.
Type: Single Family Home
Location: Gatlinburg ,Tennessee
Price: $597,000
Get more information >

Good News In Real Estate Has Two Gifts

Posted by Gatlin on

In my reading of current real estate news, I read about two trends that favor today’s real estate buyer. News out of the National Association of Realtors in Washington, DC indicate that the Pending Home Sales Index is on a record-setting roll having risen for six consecutive months. Regular readers of my newsletter and blogs may remember past references to the Pending Home Sales Index. However, for new readers the “Index” we are talking about began in 2001. It has become a leading indication of real estate activity. Pending home sales indicate that a sales contract has been signed, but it is not officially a closed transaction. Generally these pending sales are finalized in 1-2 months of signing. This index is compiled from a big national sample, typically about 20% of the total national existing home sales transactions. An index reading of 100 is equal to the average level of real estate contrast activity that occured in 2001. This was the first year to be examined and it turned out to be the beginning of a 5 year period for consecutive record setting in existing-home sales. The great news for the Pending Home Sales Index is that it has never increased for 6 consecutive months in its entire history and it is at the highest level (100.7) since June of 2007.

According to chief economist Lawrence Yun of the NAR, the index and other factors are showing a shift in housing markets for the better. The second gift that current real estate news unveiled is that the Housing Affordability Index is remaining high. In July 09 it was 158.5. The index is now not at its peak, but indicates that buyers will still find housing affordable. The HAI uses data going back to 1970 and this index was utilized beginning in 1981. This index at a value of 100 means that a median-income family has adequate income to qualify for a mortgage on a median-priced existing single family home. The HAI factors in: home prices, closing costs, mortgage interest rates, etc. and assumes a 20% down payment with a qualifying ratio of 25% gross income for mortgage principle and interest. Essentially the higher the HAI number the more affordable housing is for most people.

Here is my perspective on these two good aspects for real estate. It is still too early to know for certain if the real estate market has bottomed . However, there is plenty of housing inventory available with good mortgage rates and a potential tax credit for qualified buyers who purchase before December of this year. Prices on the entire market are being kept off their high by an influx of bargain priced foreclosures. So for buying or selling homes there are opportunities available. To explore the real estate market in the Smokies contact The Jason White Team today and see how we can assist you to buy or sell in today’s unique real estate market.

The Uptrend Continues in Pending Home Sales for July

Posted by Gatlin on

I was excited to read research out of the National Association of Realtors in Washington DC, that pending home sales are up for the fifth consecutive month.  An uptrend of this duration has not occurred since July of 2003 (over 6 years ago).  The Pending Home Sales Index is a future oriented indicator that is based on contracts signed in June 2009.  Numbers for this index rose 3.6% to 94.6% from a revised reading of 91.3% in May of 2009.  This is 6.7% above June of 2008’s reading of 88.7%.  Our Pending Home Sales Index here in the South is among the strongest in the Nation with comparative figures as follows:
To better understand what these figures mean and how the Pending Home Sales Index is compiled, I have included some background information.  The figures came from the National Association of Realtors which is the largest trade association in America.  It represents about 1.2 million members who work in various parts of the residential and commercial real estate industries. The Pending Home Sales Index is one of the key indicators for evaluating the housing sector’s performance.  A home sale is listed as pending when a contract has been signed, but the sales transaction is not officially closed.  Generally, a sale is finalized within 1-2 months after signing.  The Pending Home Sales Index is compiled from a large national sample, usually about 20% of the transactions for existing home sales.  The significance of the index shows trends in sales-contract activity.  Data since 2001 shows greater accuracy in viewing the annual index changes or from the comparison of the same month vs that month a year earlier, rather than predicting trends through month to month changes of the same year.

An index reading of 100 equals the average level of contract activity in 2001. This was the first year to be examined and it was the first of 5 consecutive record years for existing home sales.

Examining the Index with this background information gives you better understanding of what it means.  However, to really find the answers to your real estate questions here in the Great Smoky Mountains area feel free to contact me at The Jason White Team.

Pending Home Sales Up for Third Month in a Row

Posted by Gatlin on

Good News out of Washington for the Real Estate Market!! Indicators released out of Washington, for June 2009, point to good activity for real estate. The Pending Home Sales Index is up for the third consecutive month from 84.6 in March to 90.3 in April. This is a 6.7% increase from last month and 3.2% higher than April last year.

Pending Home Sales Up
Pending Home Sales Up

National Association of Realtors announce that “housing affordability conditions have been at historic highs”. These markers of increasing activity are certainly assisted by low mortgage interest rates and the first-time buyer tax credit. 

With official news like this hitting the media, timing is perfect to contact Jason White to check out great buys in the Smoky Mountain Real Estate or to explore listing your property for sale with a consistant leader in Smoky Mountain Real Estate sales.