Pending Home Sales Continue Recovery

Believe It Or Not! Homes Are Selling In The Atlanta Metro Area!

Today, there is a total of 58,657 homes on the market in the metro Atlanta area. That is down from a total of 63,735 on Friday, December 31st. WOW!

Likewise, there are currently 6,664 homes in the entire Atlanta area showing up today as PENDING SALE. And, there have been 5,132 homes SOLD and CLOSED in the metro Atlanta area since November 1st.

Since I subscribe to RIS MEDIA, I often include timely articles in this BLOG for your review and information. Keeping in mind the above local Atlanta metro statistics, I include the following article for your information. If you have any questions regarding the activity in your specific zip code, school district or sub-division, please feel free to call me. I am always happy to supply that information and discuss your individual needs and wants. Read On and Happy New Year!

RISMEDIA, January 3, 2011—Pending home sales rose again in November 2010, with the broad trend over the past five months indicating a gradual recovery into 2011, according to the National Association of REALTORS®. The Pending Home Sales Index, a forward-looking indicator, rose 3.5% to 92.2 based on contracts signed in November from a downwardly revised 89.1 in October. The index is 5.0% below a reading of 97.0 in November 2009. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said historically high housing affordability is boosting sales activity. “In addition to exceptional affordability conditions, steady improvements in the economy are helping bring buyers into the market,” he said. “But further gains are needed to reach normal levels of sales activity.”

The PHSI in the Northeast increased 1.8% to 72.6 in November but is 6.2% below November 2009. In the Midwest, the index declined 4.2% in November to 78.3 and is 7.7% below a year ago. Pending home sales in the South slipped 1.8% to an index of 91.4 and are 7.2% below November 2009. In the West, the index jumped 18.2% to 123.3 and is 0.4% above a year ago.

“If we add 2 million jobs as expected in 2011, and mortgage rates rise only moderately, we should see existing-home sales rise to a higher, sustainable volume,” Yun said. “Credit remains tight, but if lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy.”

The 30-year fixed-rate mortgage is forecast to rise gradually to 5.3% around the end of 2011; at the same time, unemployment should drop to 9.2%.

For perspective, Yun said that the U.S. has added 27 million people over the past 10 years. “However, the number of jobs is roughly the same as it was in 2000 when existing-home sales totaled 5.2 million, which appears to be a sustainable figure given the current level of employment,” he explained.

“All the indicator trends are pointing to a gradual housing recovery,” Yun said. “Home price prospects will vary depending largely upon local job market conditions. The national median home price, however, is expected to remain stable even with a continuing flow of distressed properties coming onto the market, as long as there is a steady demand of financially healthy home buyers.”

Existing-home sales are projected to rise about 8% to 5.2 million in 2011 from 4.8 million in 2010, with an additional gain of 4% in 2012. The median existing-home price could rise 0.6% to $173,700 in 2011 from $172,700 in 2010, which was essentially unchanged from 2009.

“As we gradually work off the excess housing inventory, supply levels will eventually come more in-line with historic averages, and could allow home prices to rise modestly in the range of 2-3% in 2012,” Yun said.

New-home sales are estimated to rise 24% to 392,000 in 2011, but would remain well below historic averages, while housing starts are forecast to rise 21% to 716,000.

Yun sees Gross sees Gross Domestic Product growing 2.% in 2011, and the Consumer Price Index rising 2.3%.

Sara Hibbard is a licensed Realtor in the state of Georgia. Sara looks forward to assisting you and your family with all your real estate needs when the time is right for you. Sara can be reached at 770-399-8108 or via e-mail at sara@sarahibbard.com. Sara looks forward to answering your questions regarding the Atlanta metro real estate market in general or specifics regarding the relocation / buying / selling process.