Maggie Valley Real Estate Blog

The Pending Home Sales Index showed an increase of 1% in December over the previous month. The results in December were 10.9% above the December 2008 results. The results in November had been down 16.4% from October results. This was in response to the original expiration date of the tax credits on November 30,2009. The tax credits have since been expanded and extended. The overall real estate market continues to improve and the December results were the 5th highest number in two years.

The December results by region are as follows; Midwest was up 5.2% to 86.9 an improvement of 8.7% from the previous year, Northeast was up 2.3% to 76.1% showing a 14.9% improvement over the previous year, South was up 2.7% to 98.4 which was 5.5% improvement from the previous year, and the West fell by 3.8% to 119.9 and they are currently up 18.6% over the previous year.

The result of the continuing increase in home sales as shown in the Pending Home Sales Index has also been a firming of prices. This along with the current low interest rates should help the continued improvement in the real estate market.

David Craven
RE/MAX Mountain Realty
David@DavidCraven.com

The Standard & Poor/Case Schiller home price index showed an increase in home prices in October 2009 which was the fifth month in a row for the index. The Index showed eleven of the twenty markets that are tracked as having gains and a continuing housing recovery. The seasonally adjusted index for October showed a reading of 145.36  and was set as .4 higher than September 2009. The Index is currently down 7.3 percent from October 2008. The Index is still nearly 30 per cent below the peak of the housing boom in April 2006.

The improved employment outlook and the continued turnaround in home prices were factors behind the Consumer Confidence Index (CCI) increasing to 52.9 in December from a revised reading of 50.6 for November. The consumers' outlook on jobs over the next six months has also reached its highest level over the past two years. The federal government focus on job creation and making homes more affordable to slow the rate of foreclosures has been a factor in the CCI improvement.

Another factor for the increase in homes sales and home prices has been the homebuyers rush to close the purchase of their home before the expiration of the tax credit on November 30. Congress has since expanded and extended the tax credit. The expanded form of the tax credit allows qualified homebuyers who had lived in their current properties at least five years a tax credit of up to $6500 when they relocate.

This is a great time to buy real estate. There is still a large inventory of homes available in most areas of the country, government incentives to assist buyers such as tax credits, much lower house prices, record low interest rates, and avoid the spring rush to beat the extended tax credit deadline.

David Craven
RE/MAX Mountain Realty
David@DavidCraven.com
www.HomesForNC.com
www.waynesvilleHomes-ForSale.com

The National Association Of Realtors reported on December 1, 2009 that the Pending Homes Sales Index has now risen for nine months in a row. This is a first for the index since it began in 2001.

The index of pending homes sales contracts signed in October showed a 3.7% increase to 114.1 from the index of 110.0 that was reached in September 2009. October 2009 was 31.8% higher than the 86.6% recorded in October 2008. This was the highest level since March 2006.

The index for October in the Northeast was 100.2 (44.2% increase from October 2008), Midwest was 109.6 (36.6% higher than October 2008), South was 115.4 (31.6% higher than October 2008), and the West was 127.7 (21.9 above October 2008).

Inventories of homes for sale have continued to decline and it is believed a self sustaining housing market between buyers and sellers could be achieved by the middle of 2010. The tax credit along with record low interest has unleashed a pent up demand from qualified renters and given first time home buyers the incentive and the ability to become homeowners. The expanded tax credit should continue the momentum of the housing recovery.

Home sales for November will be released on December 22 and November Pending Homes Sales Index will be reported on January 5, 2010.

David Craven
Beverly-Hanks and Associates
DCraven@Beverly-Hanks.com
www.HomesForNC.com
www.WaynesvilleHomes-ForSale.com

Search the Western North Carolina Mountain MLS on the above websites.

Homes sales trend in September were reported as the largest monthly increase in the past 26 years. Buyers were motivated to complete their qualified home purchase before the first time home buyers tax credit expires. Sales had increased 9.4% and this is a seasonally adjusted rate of 5.57 million according to the National Association of Realtors.

The pace of homes sold had beaten Wall Street forecast and was the strongest in two years. Previous forecast for September sales was projected at 5.35 million. So far this year nationwide homes sales were up 24% from their bottom in January, however, sales are still down 23% from their boom period four years ago.

The unsold homes inventory fell 7% to 3.63 million. This is less than an eight month supply at the current sales pace.

Third quarter sales for units sold shows a strong increase over 2008 with a 9.2% increase. Because prices are down 9.4%, sales were down 1.1% for the period. The Midwest was up 11%, South was up 10.4%, and the West had an increase of 9.4%.

Housing concerns are still prominent and Congress is considering proposals to extend the tax credit for for first time home buyers. Senator Christopher Dodd, Connecticut, and Senator Johnny Isakson of Georgia are pushing to extend it through June 30, 2010.

David Craven
Beverly-Hanks and Associates
DCraven@Beverly-Hanks.com
www.HomesForNC.com
www.WaynesvilleHomes-ForSale.Com

Pending homes sale have continued their record streak through August and is now the longest streak of the index since the index began in 2001. Contracts to purchase homes in August had risen 6.4% to 103.8 from the July index of 97.6. This was an increase of 12.4% from August 2008. The index is currently at its highest since March 2007 when the index was 104.5. 

The Pending Homes Sales Index in the Northeast was 85.3, Midwest was 90.8, South was 104.6, and the West has surged to 130.5 which was 22.3% higher than last year. The Pending Homes Sales Index for September will be released on November 2.

The race to beat the deadline for the first time home buyer has been a major factor for the record setting trend. Extending and expanding the tax credit will be vital to extend this record setting pace because after November 30 the current tax credit for qualified first time home buyers expires. The current housing recovery is still not considered self sustaining so many including myself believe the government will do the right thing and start a replacement program to assist the continuing housing recovery.

David Craven
Beverly-Hanks and Associates
DCraven@Beverly-Hanks.com
www.HomesForNC.com
www.WaynesvilleHomes-ForSale.com