As said by the National Association of Realtors, pending home sales showed a marked uptrend in October after the bottom fell out in June. The Pending Home Sales Index, which shows future trends, indicated a rise from 10.4 to 89.3 percent. Still, in October 2009, before the contract deadline for tax credit in November, there was a cyclical peak of 112.4. Now, the October 2010 uptrend speaks of contracts, of course, not actual closings. A closing takes two months or more, but the statistics are encouraging.
The National Association of Realtors is the United State’s largest trade association represents over one million from both the industries of commercial and residential real estate. The association’s chief economist, Lawrence Yun, declared that the housing market is still in the recovery phase, but job market improvements and lower housing prices should boost the market as 2011 progresses. The stabilizing of loan underwriting values and the weeding out of needless underwriting fees lowers risks for borrowers. Homebuyers should be encouraged.
Yun is expecting that, near term, sales of homes will continue to rise over the coming year. There will be some apprehension for consumers if mortgage interest disappears. Subtraction of mortgage interest does influence affordability of housing, so Yun is hoping this does not occur.
The Pending Home Sales Index did show a significant rise in the Northeast in October, but it is over 27 per cent below October 2009. The Midwest also had a rise in October, and, yet, was over 24 per cent less than the same month in 2009. The South rose 7.1 per cent, but was more than 18 per cent under last year’s number. Then, in the West, the count was more than 15 less than October 2009. Considering these rises, there is promising progress in the housing market all over the country.