Higher home prices ahead, says the Pending Home Sales Index
The housing market continues to steam forward.
As reported by the National Association of Realtors, the Pending Home Sales Index posted its 8th consecutive monthly gain in September.
It’s the longest winning streak in the history of the index and Pending Home Sales are now at their highest levels since December 2006.
A Pending Home Sale is a home under contract to sell, but not yet closed. It’s the precursor to an Existing Home Sale.
When the Pending Home Sales Index rises, it signifies that market activity has picked up. September’s data confirms what we’ve been noticing since February - the Buyers Market is drawing to a close.
With more homes under contract in the marketplace, home buyers typically face one or more of the following:
- Competitive, multiple-offer situations
- Reduced purchase price leverage over sellers
- Fewer seller concessions
Therefore, if you’re thinking about buying a home, now is the time to act. With the congressional extension of the tax credit and interest rates hovering at 5 percent, this is the ideal buyer’s market - but it won’t last forever!
Posted by Ryan Leahy
This is a guest post by Ryan Leahy. He is a lender with Leahy & Associates in Austin, TX, and updates his blog daily. To contact Ryan, call (512) 692-7242 or email rleahy@houseloan.com.
Tags: pending home sales