Pending Home Sales Rise in January to Highest Level in 18 Months

Source: National Association of REALTORS

WASHINGTON (February 27, 2015) — Improved buyer demand at the beginning of 2015 pushed pending home sales in January to their highest level since August 2013, according to the National Association of Realtors®. All major regions except for the Midwest saw gains in activity in January.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, climbed 1.7 percent to 104.2 in January from an upwardly revised 102.5 in December and is now 8.4 percent above January 2014 (96.1). This marks the fifth consecutive month of year-over-year gains with each month accelerating the previous month's gain.

Lawrence Yun, NAR chief economist, says for the most part buyers in January were able to overcome tight supply to sign contracts at a pace that highlights the underlying demand that exists in today's market. “Contract activity is convincingly up compared to a year ago despite comparable inventory levels,” he said. “The difference this year is the positive factors supporting stronger sales, such as slightly improving credit conditions, more jobs and slower price growth.”

Yun also points to more favorable conditions for traditional buyers entering the market. All-cash sales and sales to investors are both down from a year ago¹, creating less competition and some relief for buyers who still face the challenge of limited homes available for sale.

“All indications point to modest sales gains as we head into the spring buying season,” says Yun. “However, the pace will greatly depend on how much upward pressure the impact of low inventory will have on home prices. Appreciation anywhere near double-digits isn't healthy or sustainable in the current economic environment.”

The PHSI in the Northeast inched 0.1 percent to 84.9 in January, and is now 6.9 percent above a year ago. In the Midwest the index decreased 0.7 percent to 99.3 in January, but is 4.2 percent above January 2014.

Pending home sales experienced the largest increase in the South, up 3.2 percent to an index of 121.9 in January (highest since April 2010) and are 9.7 percent above last January. The index in the West rose 2.2 percent in January to 96.4 and is 11.4 percent above a year ago.

Total existing-homes sales in 2015 are forecast to be around 5.26 million, an increase of 6.4 percent from 2014. The national median existing-home price for all of this year is expected to increase near 5 percent. In 2014, existing-home sales declined 2.9 percent and prices rose 5.7 percent.

The National Association of Realtors®, “The Voice for Real Estate,” is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

^{1According to NAR's January Realtors® Confidence Index, all-cash sales were 27 percent of sales, down from 33 percent in January 2014. Sales to investors represented 17 percent of the market in January, down from 20 percent a year ago.}

^{*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.}

^{The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.}

^{An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.}

^{NOTE: Existing-home Sales for February will be reported March 23, and the next Pending Home Sales Index will be March 30; release times are 10:00 a.m. ET.}

Real estate data is everywhere, but what does it mean?

03/20/2015 | Author: Marty Kramer

We are swimming in data these days.

In real estate, you can find statistics, trends, and numerical predictions on home sales prices, foreclosure rates, housing inventory, commercial real estate absorption rates, mortgage activity, prices per square foot, the value of remodeling projects, and more.

But what do you do with all this information? Are the sources reliable and up-to-date? If the numbers are for your region (or state, city, or ZIP code), do they translate to your neighborhood, that street in that neighborhood, and that exact property on that street in that neighborhood?

Most important of all, what do all those statistics mean to you if you’re getting ready to buy, sell, or lease a home or commercial property?

It’s one thing to look at numbers on a website—quite another to do business in the actual world of real estate. A Texas REALTOR® lives those numbers day in and day out and knows how the data relate to actual properties and real world negotiations. So digest all the real estate data you can find. Then hire a Texas REALTOR® to help you sort it all out and achieve your goals.

Can I send counteroffers to more than one buyer?

02/24/2015 | Author: TAR Legal Staff

Three different buyers submitted offers for my house. Can I send counteroffers to all three and accept the response I like best?

When you make an offer or counteroffer, you give the other party the power of acceptance to create a binding contract. Therefore, if each buyer accepts your counteroffer, you would be legally bound to sell the property to three different buyers.

You could make a counteroffer to only one prospect. Or, if you’re working with a Texas REALTOR®, he or she can provide each buyer with the Texas Association of REALTORS® form Seller’s Invitation for Buyer to Submit New Offer. This form indicates that you aren’t accepting the original offer, and allows you to outline what you’re looking for in a subsequent offer. The form also states that your property will remain on the market, and that you may consider and accept other offers.

How to arrive at the best listing price for your property

02/27/2015 | Author: Editorial Staff, Texas Association of REALTORS

Before you list your home for sale, you have to decide on an asking price. Many consumers consult real estate websites, but be aware that not all such websites have reliable information.

The best source for reliable info
A Texas REALTOR® has the accurate information you need to arrive at a competitive price to attract buyers. What makes a Texas REALTOR® a trusted source?

One reason is that a Texas REALTOR® has access to actual sold data that he or she can use to determine the sales price of properties similar to yours. Some of the criteria used are:

• Location. Properties in the same neighborhood or located as close as possible to yours.
• Timing. Properties that were sold recently, preferably within the past few months.  
• Size. Properties that are relatively the same size based on square footage, number of floors, or the size of the lot.
• Features. Properties with the same number of rooms, comparable amenities, or similar upgrades.

How’s the market?
Another important factor in determining a listing price is how your local real estate market is performing when you decide to sell. Is it a buyer’s market where inventory is high, or is it a seller’s market because there aren't many homes listed?

A Texas REALTOR® has the resources, experience, and knowledge to help you reach your real estate goals. 

I would love to help you get your house SOLD!  Call me today and let's get started!