This morning, the National Association of Realtors reported that its Pending Home Sales Index decreased 1.7% in October. Pending home sales are contracts signed for existing home sales scheduled to close in the next one to two months.
On a monthly (and yearly) basis, the Pending Home Sales Index advanced 1.9% in the Northeast (+3.0% YoY), however, fell elsewhere, declining 2.7% in the Midwest (+1.8% YoY), 1.7% in the South (+5.1 YoY), and 3.4% in the West (+7.5% YoY).
No surprise to us! North-easterners are fleeing from high taxes and bad weather and moving to more affordable pleasant conditions elsewhere.
NAR Chief Economist Lawrence Yun once again stated: "While contract signings have decreased, the overall economic landscape remains favorable. Mortgage rates continue to be low at below 4% - which will attract buyers - employment levels are strong and many recession claims have dissipated." He noted that inventory levels remain a problem, putting upward pressure on prices and holding back sales, by adding: "We still need to address and, more importantly, correct inadequate levels of inventory across the country. There is no shortage of buyers seeking homes, but a lack of available units continues to drag down the nation's housing market and overall economy. We risk a lingering shortage of sufficient inventory if homebuilding only continues at its current pace over the next 20 years, when the U.S. population is projected to increase by more than 40 million over this period. Clearly, home builders must step in and construct more housing."
It's still a Housing Nirvana! Great for buyers because of low mortgage rates and great for Sellers because of the low inventory of homes on the market. But how long can this last? Care to guess? We don't. We are hearing from our mortgage lenders that rates are inching up and builders here in Florida are building everywhere! At some point higher rates and over-supply of new homes will end what we've been experiencing-the best of both worlds for both buyers and sellers.
Conclusion: Without a doubt, this is one of the greatest times in history to buy a first home, retire to your dream house, or re-locate to a more desired location. Let us help you make a plan to accomplish that dream!
Don't Miss the Boat!!
Call me (Carolyn) or Bill (The Winter Team) at 941-302-8855 or email us at Carolyn@WinterSuncoast.com.