Unexpected Climb of NAR's Pending Home Sales Index

Real Estate Agent with PalmerHouse Properties & Associates, LLC 316636

The National Association of Realtors has reported that pending home sales have increased 5.2%, which was mostly unexpected by some due to the dramatic drop of home sales in July....

Was it that unexpected???? Not really, in my honest opinion. In our local market, we saw a gigantic increase in pending home sales during the month of March. No big surprise since buyers in most markets took advantage of the tax credit - especially at the last minute. Simply stated, those who were able to purchase sapped up our existing inventory and those who weren't...didn't. However, they did go home and work on those issues needed to increase their score, saved a little more money....and 5 to 6 months later.... VOILA!!!

I know that there's chatter about another homebuyer tax credit, but the peaks and valleys brought on by the first one is just too much for my skittish nature. I think that it's time for us to allow the market to correct itself.

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Comments (3)

Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA


I agree with your commentary.  Don't you think there's a real demand ( tax credit programs or not) that can be postponed, but it very hard to stop?


Sep 03, 2010 02:19 AM
Vanessa Calhoun
PalmerHouse Properties & Associates, LLC - Atlanta, GA
Your Greater Atlanta Marketing Guru!!

You can bet your bottom dollar that there is! The demand will always be present. The severity of the demand depends upon other external factors, of course. We have to be careful in attempting to "create" a demand because we don't want false positives or a slight peak in home prices only to see them drop again.

Sep 03, 2010 02:36 AM
Not a real person
San Diego, CA

We seem to be in year two of a recovery here, with sales steadily increasing since February 2008 and prices steadily increasing since February 2009.

Oct 26, 2010 07:11 AM

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