This morning’s headline from the National Association of Realtors® trumpeted “Pending Home Sales Stall in December,” however, the underlying numbers showed that although there was a drop month-to-month from November contracts, there was a large (11.7%) year-over-year gain. The NAR Pending Home Sales Index is a forward-looking indicator based on home sales contract signings. Separately, NAR tracks “foot traffic,” — the number of times lockboxes on listed homes are opened. There was a substantial uptick in foot traffic in December, indicating that Pending Home Sales are likely to improve the next three months.
Lawrence Yun, NAR chief economist, said fewer homes available for sale and a slight acceleration in prices likely led to December’s month-to-month decline in contract signings. “Total inventory fell in December for the first time in 16 months, resulting in fewer choices for buyers and a modest uptick in price growth in markets throughout the country,” he said. “With interest rates at lows not seen since early 2013, the strength in existing-sales in upcoming months will largely depend on the willingness of current homeowners to realize their equity gains from the past couple years and trade up.”
Yun added, “More jobs, increasing consumer confidence, less expensive mortgage insurance and new low down payment programs coming into the marketplace will likely lead to more demand from first-time buyers.”
Watch the full interview with Yun on YouTube:
Here’s today’s press release: Pending Home Sales Stall in December | realtor.org.
Here’s the foot traffic article: Foot Traffic Points to Strong Start in 2015
To sell your Flagstaff Home, contact The Elite Team at RE/MAX Peak Properties.