After a strong run to close out 2010, the market for home resales softened a bit in January. That is, IF you're only looking at home sales from a national perspective. Here in the Nashville market, we are experience an INCREASE in home sales this year compared with where we were last year. It's important that you ask your local realtor how our local market figures match up with the national figures. Your LOCAL REALTOR is your local market EXPERT.
However, you can read more about national home sales below. It's important to ALSO remember that all different types of reports show different information about home sales, new home starts, home re-sales, etc. Don't form an opinion about the market until you have reviewed data from MULTIPLE reliable sources.
On a seasonally-adjusted basis, the Pending Home Sales Index dropped 3 percent last month, and December's figures were revised downward for a loss, too, according to the National Association of REALTORS®.
A "pending home sale" is defined as a home under contract to sell, but not yet closed.
The forward-looking index is now at a 3-month low on a national level, but still well ahead of its rolling 6-month average.
Unfortunately, national data isn't overly helpful for buyers and sellers of real estate. The National Association of REALTORS® knows this, of course, and makes an effort to get more granular, supplementing the Pending Home Sales Index report with a region-by-region breakdown.
Between December and January, only the South Region increased in sales volume. The Midwest led the losers:
- Northeast Region: -2.4%
- Midwest Region : -7.3%
- South Region : +1.4%
- West Region : -5.2%
Even still, however, regional data remains too broad to be practical. The South Region, for example, is comprised of multiple states with thousands of cities and town. The housing market dynamics of a specific neighborhood in a specific regional city will differ from that of another neighborhood in another regional city.
Real estate data must be local to be relevant.
Overall, then, what may be most telling from January's Pending Home Sales Index is how weather can influence results.
Most of the country faced drastic weather conditions in January, ranging from raging snowstorms to bitter cold. Events like that tend to put a damper on home sales, a contributing factor in why the number of new contracts fell.
Looking forward, we should expect the Pending Home Sales Index to resume rising. Inclement weather doesn't kill demand; it just delays it. And mortgage rates have settled somewhat. These two factors should help release pent-up demand just as the Spring Homebuying Season gets underway.
As more buyers enter the market, negotiation leverage will shift to home sellers, pressuring Franklin home prices higher. The lowest prices of the year - and the cheapest financing - could be what you see today.
Also, be sure to check back here on this site each Friday for the local Nashville, TN Real Estate Market Stats!! Check out last Friday's! Our market conditions are favorable right now for buyers and sellers alike. Inventory is begining to move and the Spring buzz is in the air!
As always, I'm available in the office today to answer your questions and get you prequalified.
~Christina Livingston, ACOPIA Home Loans, Franklin, TN
(615) 656-2821 office email@example.com