Article Review: Pending Home Sales Rising

So many people are so afraid to invest in real estate right now and in my recent experience the common reason is; other people. Their friends, family, neighbor are in their ear saying it’s a bad idea. It’s this negative mentality that is stopping you from making the very wise investment in real estate. What about what you want? Here is an article from the National Association of Realtors stating the increase in contracts being signed for real estate closings. So before you listen to all those voices of other people, have a look at what the professionals found.

Pending Home Sales Rise Again in March

Washington, DC, April 28, 2011

March saw another increase in pending home sales, with contract activity rising unevenly in six of the past nine months, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 5.1 percent to 94.1 in March from a downwardly revised 89.5 in February. The index is 11.4 percent below 106.2 in March 2010; however, activity was at elevated levels in March and April of 2010 to meet the contract deadline for the home buyer tax credit.

The data reflects contracts but not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said home sales activity has shown an uneven but notable improvement. “Since reaching a cyclical bottom last June, pending home sales have posted an overall gain of 24 percent and demonstrate the market is recovering on its own,” he said. “The index means modest near-term gains in existing-home sales are likely, which would be even stronger if tight mortgage lending criteria returned to normal, safe standards.”

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