A recent NAR (National Association of Realtors) report showed that pending contracts to buy homes were at an 18 month high. The index of pending agreements rose to 100.1 in the month of November, a gain of 7.3%. An index of 100 is an indication of a healthy market. The November reading is the highest since the buying rush to take advantage of an expiring federal tax credit, when the index hit 111.5 in April 2010. The September to October reading showed a 10.4% gain.
It usually takes 1-2 months for a pending contract to become a home purchase, so the market may be shaping up for a very active 1st and 2nd quarter. Many buyers are still waiting for the “bottom” of the market, whatever the bottom is. The funny thing about “the bottom” of any market is that no one knows what it is until it has passed. Unless you buy at just the right time, usually by luck, you will miss it.
According to Standard and Poor’s/Case-Shiller index, home prices dropped 1.2% in September and mortgage rates continue to be at all time lows.
So…Is someone else buying the home of your dreams?
If buyers continue to sit on the “sidelines” waiting for the perfect time to buy they may be missing out on that perfect home.
Alan Bayle
The Todd Tramonte Home Selling Team
