Pending Home Sales Fall For Second Straight Month
WASHINGTON -Pending home sales fell in January, the second straight monthly decline, a real estate trade group reported Monday. The pending home sales index fell 2.8% in January, close to market expectations, the National Association of Realtorssaid. However, sales in December were much weaker than first thought. Sales in December were revised sharply lower to a fall of 3.2% versus the prior estimate of a 2% increase. The index is 1.5% below January 2010 but 20.6% above the trough hit last June after the homebuyer tax creditexpired. Pending homes sales fell in the Northeast, the Midwest, and West but rose in the South. The index is based on sales contracts on existing homes. The NAR also reports on sales of existing homes once the sales close, usually six to eight weeks later.
Source: Greg Robb Copyright © 2011 MarketWatch, Inc. reprinted by permission.
Not trying to be a doom and gloom gal just trying to point out, once again, real estate IS local. Your local REALTOR knows the market. This is why we can't sell homes on the Internet, or Internot as I like to call it. Zillow, Trulia, Redfin, and now even NAR can't seem to get a handle on the reality of realty in today's confusing market. More foreclosures are in the pipeline than ever before, FHA short sale refi's cost us the taxpayers 8 Billion (yes Billion) dollars to refinance 40 HOMES! HAMP is being terminated as it should be, and HAFA did an amazing 700 transactions in 7 months.
Where and when is the bottom? Well if we has that crystal ball we would all be rich. Until we get back to pre-run up prices with normal appreciation we will more than likely not see a stabilization. Go back to your MLS and look up prices at the bottom of your last market probably circa 1996-1997 now add 2-3% appreciation to today. It is an interesting study. Sure prices have fallen 40-60% from 2005-2006 but those were such over inflated prices that we can not use them in a "real world" scenario.
Will the market continue to decline? Probably. Will the market bottom out? Definitely. Will the market go back up? Eventually. It is not all about value. Home ownership is about stability, neighborhood, family, friends, and yes an investment in the end. Hang in there everyone. As Kenny Rogers says "You Got To Know When to Hold , Know When to Fold ...."