Home Members Tools Credit Cards
   

  • Pending Homes Sale Slip 3.5% in December

    Pending home sales slipped 3.5% in December after reaching a 19-month high, but were 5.6% above levels from the same month in 2010, the National Association of Realtors reported on Wednesday. Pending home sales are contracts that have not yet gone to closing, and are a good indicator of sales to be completed within the next one to two months.

    The Pending Home Sales Index fell from 100.1 in November to 96.6 in December. An index of 100 is equal to the level of contracts in 2001 when NAR began keeping track of pending home sales, and is considered to be “historically healthy.”

    By region, the index of 95.3 in the Midwest actually increased 4% in December and had a 13.3% increase from December 2010. The index in the Northeast fell 3.1% to 74.7 in December to a level 0.8% lower than a year ago. In the South and in the West, the index in both regions slipped in December but increased from December 2010, with index readings of 101.1 and 107.9, respectively.

    Lawrence Yun, NAR chief economist, said the trend line remains positive. “Even with a modest decline, the preceding two months of contract activity are the highest in the past four years outside of the homebuyer tax credit period,” he said.

    Yun said that contract failures continue to put a burden on contract closings, and are reported by a third of Realtors. Contract failures can be due to the borrowers' inability to obtain a mortgage or a home's appraised value being less than the negotiated sales price. Yun added that some borrowers do go on to close on the deal after a contract delay and others continue their search and make another offer.

    “Housing affordability conditions are too good to pass up,” Yun said. “Our hope is lending conditions will gradually improve with sustained increases in closed existing-home sales.”

    Mortgage interest rates remain at historically low levels and continue to boost the housing market. The national average for a 30-year fixed rate conventional loan was 3.98% last week.

    Meanwhile, homeowners who have decided to stay put and fix up their current house are driving the remodeling market to its highest level in five years, the National Association of Home Builders reported yesterday.

    The NAHB Remodeling Market Index increased to 46.6 in the fourth quarter to from 41.7 in the third quarter. An index reading below 50 means that more remodelers say that market activity is lower than the previous quarter than those who say it is higher. Computing the RMI includes factors such as current remodeling activity and expectations for future activity, calls for bids, appointments for proposals, and work committed for the next three months.

    “With several key components above 50, the latest RMI provides reason for guarded optimism going forward,” said NAHB Chief Economist David Crowe. “The residential remodeling market has been improving gradually, mirroring the trend in other segments of the housing market. Stringent lending requirements and economic uncertainty continue to be a drag on demand, but we expect a modest growth in remodeling activity to continue throughout 2012."



    Sources:
    National Association of Realtors
    National Association of Home Builders
  • Disclaimer

    Information in these articles is brought to you by Finance Globe. Banks, issuers, credit card, and other companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles and is further subject to our terms and conditions.
  • Recent Forum Posts

    gretchenhill

    Car Loan for People with Bad Credit

    Many people are in need of a car loan but may hesitate to apply because of their bad credit. If you can wait until your personal credit improves before

    gretchenhill September 14th, 2014, 11:15 PM Go to last post
  • Recent Headlines and Articles

    ChrisB

    Home Equity Loan Benefits

    With a home equity loan, you are able to borrow against the value of your property to obtain cash. Here are some of the most common reasons for taking out this type of loan:


    • Remodel or home renovation
    ... read more
    ChrisB September 11th, 2014, 09:14 AM
    ChrisB

    3 Simple Steps to Boost your Savings Account

    When you look at your savings account what do you see? While some people are excited at the number that stares back at them, many are wishing they had more money.

    Rather than hope for a miracle, there are... read more
    ChrisB September 10th, 2014, 09:14 AM
    ChrisB

    Stop Ignoring Other Car Insurance Companies

    You know the drill: you head to your mailbox and find another letter from another car insurance agent. They want you to contact them at your earliest convenience for a free, no obligation quote.... read more
    ChrisB September 9th, 2014, 09:34 AM
    ChrisB

    Self-employment with Little Capital is Possible

    If the idea of becoming a self-employed professional is rolling around in your head, you will soon begin to ask questions regarding the financial impact this change will have on your life.

    As scary as it may be to take... read more
    ChrisB September 5th, 2014, 09:13 AM
    ChrisB

    Financial Benefits of Buying a Vacation Home

    If you dream of one day owning a vacation home, you know that it will have an impact on your finances. While some people look at this and wonder how they will ever afford to make the purchase,... read more
    ChrisB September 4th, 2014, 07:50 AM
  • Recent Article Comments

    Wanderer

    Self-employment with Little Capital is Possible

    My comment is do prepare yourself a business plan out three years which can serve you as a guide... Go to last post

    Wanderer September 7th, 2014 01:07 PM

 

 

 

Credit Cards | Finance Social Network | Credit Card Reviews | Markets
About Us | FG on the Web | Sitemap | Privacy | Terms | Contact


Copyright © 2014 Finance Globe. All rights reserved.