Pending Home Sales, Affordability Rise

Posted on May 4, 2009 by hankbailey

After a long week perusing over the dismal Existing Homes Sales figures, the much anticipated Pending Home Sales figures came out today with a distinctly different take on the market. Pending home sales take into account properties under contract but not yet closed. Pending home sales rose in April thanks to first-time buyers who led the way in home purchases last month.

According to the NAR, “the Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, increased 3.2 percent to 84.6 from a level of 82 in February. It is 1.1 percent higher than March 2008 when it was 83.7.”

NAR chief economist Lawrence Yun, said he felt that it should take a few months for the market to gain momentum.

“This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a down payment,” Yun noted. He concluded his remarks by stating, “We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around.”

In the South pending home sales figures increased by almost 10 percent and is almost 8 percent above a year ago. The Southern region of the United States had the largest increase and the biggest gains over a year ago as compared to other regions of the U.S.

According to the NAR’s Housing Affordability Index, affordability remains high.

The affordability index was 166.7 in March and is more than 30 percent higher than a year ago. NAR President Charles McMillan commented, “Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment,” he says. “For buyers who’ve been on the sidelines and have good jobs, the market has never looked more favorable. Homeownership has always offered immediate benefits and long-term value, but the advantages in today’s market are unique.

Learn more about the 2009 first-time home buyer tax credit.

“Pending Home Sales” Show an Increase; Housing Affordability Improves

Posted on June 2, 2009 by hankbailey

The Pending Home Sales Index, an index based upone properties under contract for sale in April rose almost seven percent to 90.3 from March says the NAR.

NAR chief economist Lawrence Yun said, “Buyers are responding to very favorable market conditions. Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”

NAR President Charles McMillan said that there are numerous buyer assistance programs at this time to interested home buyers and especially to first time home buyers. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for down payment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,” he said.

“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger down payment. Buyers who are wondering about their options should contact a REALTOR, who can advise consumers on the housing assistance programs and resources available in a given area,” according to Yun.

NAR’s Housing Affordability Index is still in record territory. According to the NAR, “The affordability index rose to 174.8 in April from an upwardly revised 171.9 in March, which makes it the second-highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.

A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20 percent down payment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small down payments are roughly 80 percent of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.”

If you are a buyer in our market, these are probably the best buying conditions in 30 years! If you would like to search the Athens MLS with MapTracks please take a look at listings in our “Classic City” today! On this web MLS search solution you can search every listing on the Georgia MLS for the Greater Athens area or in your Georgia town!