Pending Home Sales Hit 14 Month High

Per Inman News on October 8, 2008

Pending sales of U.S. resale homes rose 8.8 percent in August compared to the same month last year, the National Association of Realtors reported today, rising to the highest level since June 2007.
The index offers an indication of future sales, as it measures the volume of signed contracts for sales transactions that have not yet closed -- sales are typically finalized within one or two months of signing, though some deals fall through before the transactions are closed.
"It's unclear how much contract activity may be impacted by the credit disruptions on Wall Street, but we're hopeful most of the increase will translate into closed existing-home sales," said Lawrence Yun, NAR chief economist, in a statement

Existing Home Sales Increase

This came out today about the increase in existing home sales, we have noticed here that our inventory is shrinking and thus I personally feel that we are at or have begun to pass the bottom. There will still be lots of deals with foreclosures, etc, still coming on the market for the next year or so thus prices will not escalate but at least buyers are back in the market and gas prices are way down. Here is the quote:

The only economic news released today was September's Existing Home Sales data from the National Association of Realtors. They reported an increase of over 5% in home resales last month when the report was expected to show an increase of approximately 1%. This means that sales activity was stronger than expected last month.

So call me or a member of The Wertan Team today if you are considering selling or buying a home in Charleston, SC, anytime soon, Thanks, David Wertan of Re/Max

Pending Home Sales Up Strongly

Here is a great article about the housing market picking up mainly in the West which was the area that first declined which has seen activity up 37.8 percent over last year, where in the South it is still sluggish the trend is that typically we follow a little behind and should feel this same pent up demand in months to come. I think this is a good sign that we have hit the bottom and are now on our way up, of course full recovery will take time as prices will remain what they are for a while and then start to increase next year at very low rates, forcasters are saying 2 to 3% increases per year, so at that rate it would take 3 to 4 years to gain back the 10% we lost in 2008 alone.

Pending Home Sales Up StronglyThursday, October 09, 2008 - National Realty News

WASHINGTON, D.C. - Pending home sales activity surged as buyers took advantage of low home prices and affordable interest rates, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in August, jumped 7.4 percent to 93.4 from an upwardly revised reading of 87.0 in July, and is 8.8 percent higher than August 2007 when it stood at 85.8. The index is at the highest level since June 2007 when it stood at 101.4.

Lawrence Yun, NAR chief economist, said home buyers were responding to improved affordability. “What we’re seeing is the momentum of people taking advantage of low home prices, with pending home sales up strongly in California, Nevada, Arizona, Florida, Rhode Island and the Washington, D.C., region,” he said. "It’s unclear how much contract activity may be impacted by the credit disruptions on Wall Street, but we’re hopeful most of the increase will translate into closed existing-home sales.”

The PHSI in the West surged 18.4 percent to 109.5 in August and remains 37.8 percent above a year ago. In the Northeast the index jumped 8.4 percent to 79.8 and is 2.0 percent higher than August 2007. The index in the Midwest rose 3.6 percent to 84.5 in August and is 6.6 percent above a year ago. In the South, the index increased 2.3 percent to 96.0 but is 2.1 percent below August 2007.

Charleston At Top of List for Job Growth

The Milken Institute/Greenstreet Real Estate Partners Best Performing Cities Index ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. The components include job, wage and salary and technology growth. The full report can be downloaded here.

The Best Performing Cities ranking depicts those U.S. metropolitan areas that are recording the top economic performance.

Charleston, SC, was ranked # 10 for 2008 !! This is up from last year when we were ranked # 12, this just shows the diversity and strength of our economy here. Pass the word, more good news that I am sure that the local media will overlook. I think this is important to pass along to people that are thinking of moving here and maybe a little anxious about moving to a smaller southern town like Charleston, SC.

Mortgage Money Available

I just recieved this from Meredith at Mellinium Financial and wanted to pass it along:

Good Afternoon,

After having a conversation in the gym, I realized that I should send an email to give everyone an update on the current mortgage market. Let me tell you about the conversation, the gentleman asked me, “So how is the Mortgage Business? From what is going on in our economy looks like there is no money to lend.” I thought it was a joke at first, but then realized he was DEAD serious! Following you will see my response based on my daily experiences in the mortgage industry.

First off, there are 100% Financing Options still available for Purchase Transactions. We are signed up with several banks that are lending up to 100% and consistently asking for our business. Please contact me if you need additional information.

Secondly, banks are lending money on Cash-Out Refinances. This means banks are allowing borrowers to extract equity from their property to pay off debt, complete home improvement projects and buy new real estate.

Next, the 30 year fixed rate today is 5.75%!!! Since 1971, there has only been 31 months where the 30 year fixed rate was under 6.0% that means, in the last 444 months, rates were below 6.0% only seven percent of the time. Looking 27 years ahead, if there is only a seven percent chance to receive an interest rate in the 5’s, and the time is now, would you buy real estate or refinance your existing mortgage?

Of course the Underwriting Guidelines have tightened within the past year. Mortgage Approvals greatly take in consideration borrower’s credit score, credit history, credit activity within the past 12 months, occupancy and income reported to the IRS.

As always, if you have any questions or need additional information regarding mortgages or just want an update on the mortgage market, please do not hesitate to contact me.

Talk to you soon,

Meredith