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

    bocald99

    Re: Report Your "Credit limit Increases" Here!

    Lowes card from $6900 to $17,000 through credit solutions. Need to remodel kitchen and buy new appliances. Spoke to super nice CS and asked for 20k and

    bocald99 August 28th, 2014, 09:11 PM Go to last post
  • Recent Headlines and Articles

    ChrisB

    Three Updates to make before Listing your Home

    It may not make sense to update your home before listing it for sale, however, there are many benefits of doing so. Most importantly, it will increase the value of the property, which means you can demand a higher price.

    There... read more
    ChrisB August 28th, 2014, 07:04 AM
    ChrisB

    Signs to Move onto another Life Insurance Agent

    When the time comes to purchase life insurance, there is nothing more important than making a confident decision without delay. After all, every day that you wait is another day you are taking... read more
    ChrisB August 27th, 2014, 08:41 AM
    ChrisB

    Why Buying a Car Online makes Sense

    In the good old days of the automotive industry, the only way to purchase a new vehicle was to stop by a local dealer and haggle with a salesperson. While this is still a strategy many employ, technology has changed... read more
    ChrisB August 26th, 2014, 08:35 AM
    ChrisB

    Is your Mortgage Broker Scamming you?

    There will be a lot going through your mind when it comes time to purchase a home. While you spend most of your time searching for the perfect property, there is something else that should be on your mind: obtaining... read more
    ChrisB August 25th, 2014, 08:29 AM
    ChrisB

    Quick Tips for Saving more Money for Retirement

    If you find that you are not saving nearly as much money as you should for your retirement, it is easy to believe that you have to make major changes to your daily life in order to catch up.

    While there is nothing wrong... read more
    ChrisB August 21st, 2014, 09:38 AM
    ChrisB

    To Buy a Car or not to Buy a Car, that is the Question

    Are you the type of person who gets excited about the thought of buying a new car? Or are you the type who avoids this at all costs?

    No matter which group you fit into, there will come a time when you need to answer... read more
    ChrisB August 20th, 2014, 09:29 AM
    ChrisB

    How to get more out of a Job Interview

    Any job interview, regardless of the company or your current position, is sure to bring some level of stress to your life. After all, you wouldn’t be interviewing if you didn’t want to secure the position.

    Some people... read more
    ChrisB August 19th, 2014, 08:31 AM
    ChrisB

    Ways to Save Money on your Commute

    Like many, you may spend a lot of time in your car commuting to and from work. While this is all part of having a job, some find that they are spending much more on this part of their day than they would... read more
    ChrisB August 18th, 2014, 10:23 AM

 

 

 

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.