Archive for the ‘Pending Home Sales Index’ Category

NAR forecasts modest movement in existing home sales

By Intero Real Estate | July 9th, 2008 0 Comments

Association president says home buyers getting great deals now

The National Association of Realtors® is forecasting modest near-term movement in existing home sales, “with a recovery in sales seen during the second half of the year.”

The association released the forecast this week. It projected that sales of existing homes will grow to an annual pace of 5.75 million in the fourth quarter from 5.01 million in the second. A 5 percent increase in existing home sales is expected next year, the association says.

The report showed the Pending Home Sales Index fell 4.7 percent to 84.7 in May compared to 88.9 in April. It is 14 percent below the May 2007 reading of 98.5.

“The overall decline in contract signings suggests we are not out of the woods by any means,” said Lawrence Yun, NAR chief economist. “The housing stimulus bill that is still being considered in the Senate is critical to assure a healthy recovery in the housing market, jobs and the economy.”

NAR President Richard F. Gaylord says the current market is offering immediate benefits for many buyers. He also notes that sharper consumer price gains could mean higher mortgage interest rates next year.

The association also forecast that sales of new homes are likely to drop 32.3 percent to 525,000 in 2008.

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NAR: Home sales may increase over next few months

By Intero Real Estate | June 12th, 2008 0 Comments

Improvement expected for second part of year

The National Association of Realtors® says the next few months could bring a modest gain in home sales. The group also says that an improvement is forecast for the second part of the year, as more consumers are able to tap into affordable mortgages.

NAR reports that the Pending Home Sales Index, based on contracts signed in April, increased 6.3 percent to 88.2 percent, compared to 83 in March.

Pending sales contracts are increasing in places where prices are dropping significantly, said Lawrence Yun, chief economist at NAR.

"Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it’s unclear if they are investors or owner-occupants," Yun said. "Sharp price reductions are leading to a quicker discovery of price equilibrium points. The West is already seeing year-over-year gains in pending contracts."

Yun said mortgage interest rates will increase steadily, but still remain historically favorable, NAR reports. Mortgage company Freddie Mac said that 30-year fixed-rate mortgages this week averaged 6.32 percent, the Associated Press reports.

Find the full NAR article here.


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