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IMPROVEMENT PROJECTED

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Real Estate Agent with Exit Realty Cherry Creek 038852

some good news from NAR

Daily Real Estate News  |  August 7, 2008
Big Gain in Pending Home Sales Index

Some improvement is projected for existing-home sales in the months ahead, with broader gains
seen by the fourth quarter as buyers take advantage of new provisions provided through the recently
passed housing stimulus bill, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in June, rose
5.3 percent to 89.0 from a downwardly revised reading of 84.5 in May, but remains 12.3 percent
below June 2007 when it stood at 101.4.

Lawrence Yun, NAR chief economist, says sales have been in a pattern of rising and falling within a
fairly narrow range.

"The vacillation of data from one month to the next indicates a housing market in transition," he says.
"The rise in pending home sales was broad-based with all four regions showing gains. This is welcome
news because a rise in contract activity is necessary for an overall housing recovery. With a tax credit
now available to first-time home buyers, increases in home sales could be sustained with the
momentum carrying into 2009."

Across the Region

Here's a deeper look at the index throughout the country:
South: jumped 9.3 percent to 92.4 in June but is 16.6 percent below June 2007.
West: rose 4.6 percent to 101.0 in June but remains 1.7 percent below a year ago.
Northeast: increased 3.4 percent to 79.6 but is 15.4 percent below June 2007.
Midwest: rose 1.3 percent in June to 79.6 but is 13.3 percent below a year ago.


Sales gains have been consistently strong in recent months in Sacramento, Calif.; Las Vegas; and
Ft. Myers, Fla., where affordability conditions have greatly improved.

The pickup in contract signings appears to be broadening with many affordable markets in
mid-America now showing year-over-year gains, including Columbus, Ohio; Charleston, W.V.;
Oklahoma City; and Colorado Springs, Colo. Pending sales have fallen significantly in Texas
markets and in the Pacific Northwest - two regions with very strong local economies.

More Market Forecasts

Yun says home prices did not fall as much as anticipated in the second quarter.

Home prices are projected to increase 3 to 6 percent in 2009, Yun adds.

Other NAR predictions influencing the market:
Mortgage rates. The 30-year fixed-rate mortgage, which also has been vacillating, is                        likely to trend up to 6.5 percent by the end of 2008, and then hold at that level for most of                    next year. NAR's housing affordability index is forecast to remain favorable this year, averaging               13 percentage points higher than in 2007.


Source: NAR
Planning Success for 2008!!
 

 

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