NAR: April Pending Home Sales Index Increases
Monday, June 16, 2008
by Michael Peron
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The National Association of Realtors (NAR) released Monday its Pending Home Sales Index for the month of April, which is a forward-looking statistical tool based on the most recent volume of home sales contracts.
In its latest report, NAR says the Index rose 6.3-percent to a reading of 88.2 from a reading of 83 the month before. Even still, the Index for April remains 13.1-percent lower than the Index from last year.
“Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it's unclear if they are investors or owner-occupants. Sharp price reductions are leading to a quicker discovery of price equilibrium points,” said Lawrence Yun, chief economist with NAR. “The West is already seeing year-over-year gains in pending contracts.”
Based on the latest report, NAR predicts that interest rates will begin to edge up slightly and the market will be affected by two opposing dynamics: good bargains versus consumer confidence.
“Policymakers need to be attentive to the fact that many homeowners have seen a reduction in housing equity, or are in an underwater situation,” Yun said. “More needs to be done on the policy front to alleviate hardships and bring fence-sitters back into the marketplace.” Kerri Panchuk | 06.09.08
In its latest report, NAR says the Index rose 6.3-percent to a reading of 88.2 from a reading of 83 the month before. Even still, the Index for April remains 13.1-percent lower than the Index from last year.
“Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it's unclear if they are investors or owner-occupants. Sharp price reductions are leading to a quicker discovery of price equilibrium points,” said Lawrence Yun, chief economist with NAR. “The West is already seeing year-over-year gains in pending contracts.”
Based on the latest report, NAR predicts that interest rates will begin to edge up slightly and the market will be affected by two opposing dynamics: good bargains versus consumer confidence.
“Policymakers need to be attentive to the fact that many homeowners have seen a reduction in housing equity, or are in an underwater situation,” Yun said. “More needs to be done on the policy front to alleviate hardships and bring fence-sitters back into the marketplace.” Kerri Panchuk | 06.09.08
