In the News: Pending home sales hit 6th straight increase
Index jumps by 3.2% in July, beating estimates and marking its longest streak on monthly increases on record.
We’re hearing more and more good news lately, and it’s backed up by hard numbers. When our real estate market has recovered before, particularly in Austin, it recovers quickly and suddenly. Will we see this recovery soon? Will the scramble for good, decent, or even okay deals hit us after Labor Day as experts have predicted? The recovery does seem imminent and close. Do you think that a time will come when buyers scramble off the fence?
NEW YORK (CNNMoney.com) — More Americans signed sales contracts to buy homes in July than in June, marking the longest streak of monthly increases on record, said a report released Tuesday.
The pending home sales index from the National Association of Realtors rose 3.2% in July after rising by 3.6% in June. That’s 12% higher than July 2008, and it marks the sixth straight increase since record-keeping began in 2001.
The reading far exceeded forecasts of economists surveyed by Briefing.com, who predicted a 1.5% increase.
Signed real estate contracts often take many weeks or months to complete, so they are considered a forward-looking indicator.
A new directionMomentum in the housing market has clearly turned for the better, said NAR chief economist Lawrence Yun, in a written statement.
“The recovery is broad-based across many parts of the country,” Yun said. “Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit.”
The first-time home buyers tax credit, passed earlier this year as part of the economic stimulus package, is worth 10% of the home purchase price up to $8,000. People who have not owned a home in the previous three years are eligible for the credit.
However, the tax credit expires on Nov. 30 and it usually takes about 90 days to close on a house after a contract is signed. As of Sept. 1, there were only 90 days left before the credit ends.
[...Continue reading at CNN.com]
What do you think? Will a time will come when buyers scramble off the fence in Austin?
Related posts:
