A rise in buyer demand pushed pending home sales upward in January to the highest level since August 2013, according to the National Association of REALTORS. The Pending Home Sales Index rose 1.7 percent in January to a 104.2 reading – 8.4 percent above levels from a year ago… Source: Daily Real Estate News
According to Lawrence Yun, NAR’s chief economist. “The difference this year is the positive factors supporting stronger sales, such as slightly improving credit conditions, more jobs, and slow price growth.” I think he forgot to mention the sustained LOW INTEREST RATES and reasonably normal home price appreciation throughout 2014.
A Regional Look: NAR’s index:
Here’s a closer look at the performance of pending home sales across the country in January, according to
- Northeast: the Pending Home Sales Index moved up slightly by 0.1 percent in January to an 84.9 reading. It is 6.9 percent above year ago levels.
- Midwest: the index fell 0.7 percent to 99.3 in January; it is 4.2 percent above January 2014.
- South: the index rose by the largest amount in the South, up 3.2 percent in January to a reading of 121.9 – the highest since April 2010; the index is 9.7 percent above where it was a year ago.
- West: the index climbed 2.2 percent in January to 96.4 and is 11.4 percent above a year ago.
We’ll have to see what the first and possibly the second quarters of 2015 stats are before getting too excited. There are two factors that will dictate the results. One is the interest will rates are most likely to increase. Two is there is a LOW INVENTORY nation wide this January with an increase in home prices. Lack of inventory in January will cause home prices to rise earlier in the year. Supply and Demand will run its course. May hurt the first time home Buyer the most.