Economic Reports, Market Insight
Why Home Prices Are Almost Certain To Rise This Fall
September 2, 2009 by James K Barath, CMPS · Leave a Comment
In what’s becoming a regular occurrence, housing data blew away economists expectations Tuesday.
As reported by the National Association of Realtors®, the Pending Home Sales Index posted its 6th consecutive monthly gain in July.
After a meteoric rise that started in January, the index is now at its highest levels in more than 2 years.
A “pending home sale” is a home that is under contract to sell, but not yet closed. It’s not the same as an actual home sold, but data shows that nearly 80% of homes under contract close within 2 months and many more close in months 3 and 4.
Home buyers — take note. When the Pending Home Sales Index is rising, it means that market activity has picked up. This can lead to any one, or a combination, of the following:
- Multiple-offer situations
- Reduced negotiation leverage over sellers
- Higher home sale prices with fewer concessions
So, consider yourself alerted. If you’re buying a home in the next several months, expect the recent run in Pending Sales to lead to a run in closed sales, too. That should lead home prices higher in most markets.
Indeed, we’re already seeing it. Case-Shiller says prices are on the upswing.
About the Author: James K Barath is a Certified Mortgage Planning Specialist, qualified liability advisor and your FHA Home Loan Expert. He is also a graduate of Purdue University, The CMPS Institute, Dale Carnegie Human Relations Course & Napoleon Hill Foundation's PMA Science of Success Class. It's your home and your future. It's his profession and his passion. He is ready to work for your best interest. Contact James Barath today for your Borrow Smart Analysis - the CALM Approach to Borrowing ! His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy! 