Pending Sales Index Climbs Again

July Numbers Exceed Expectations
For half a year now (six months straight) the pending sales on existing home sales report has shows growth. July numbers nearly matched June’s as the index increased 3.2% as compared with the previous month’s 3.6%.

Of particular note was the jump out in the West, as that region showed a 12% gain over June. The other regions remained within 3% of holding steady. Given how much foreclosure activity there has been in California, Arizona and Nevada, one would expect that foreclosures will represent at least one third of the total action in July, as it did in June.

Four main factors contributed to the positive news, just as they did in June. Prices are low enough to entice buyers into the market. The weather has been relatively mild and pleasant throughout the majority of the country. Mortgage rates remain at very low levels. And finally, tax credits for first-time homebuyers have helped some get into the game that otherwise may have stayed out of it.

Uvestor Opportunity:
The summer is not over yet. For those who want to sell, there is reason for optimism.

The $8,000 tax credit appears to have a certain appeal, so make sure buyers know about it before it is too late. There are fewer than 90 days left to take advantage of the federal offer.

Mortgage rates also are in the buyer’s favor. Though the sub-5% numbers from the spring may not be coming back on average, the rates remain very attractive from a historical point of view.