Market Good News
Posted by Edward Pierce on Tuesday, August 11th, 2009 at 5:42pm.According to the National Association of Realtors, Pending home sales are up for the fifth month in a row. This hasn't happened in six years and is a positive indicator for the real estate industry for the moment.
The Pending Home Sales Index is a forward looking indicator based on contracts signed. For the South Region we jumped 7.1% to 100.7 in June and is 8.9 percent higher than a year ago. Essentially what this means is that more and more listings are becoming under contract instead of the inventory increasing at a higher rate than demand.
Yes, a great deal of these are bank owned (REO) properties. But, we have to absorb these assets in to the market before a significant up-turn in the market can occur. Personally, I am seeing an increase in both investors purchasing properties AND an up-turn in the owner occupant (what I refer to as the "normal side of the market"). This gives me belief that we are at or near the bottoming plateau - the question becomes can we maintain the plateau or up-turn with out another major down-turn.
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