Uptrend Continues in Pending Home Sales
For the first time in six years, pending home sales are up for the fifth consecutive month, according to the National Association of Realtors®. The last time there were five consecutive monthly gains was in July 2003.
“Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines. Activity has been consistently much stronger for lower priced homes, said Lawrence Yun, NAR chief economist. “Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30.”
Yun expects existing-home sales to gradually rise over the balance of the year, with conditions varying around the country. “It appears home sales are on a sounder footing and inventory is gradually being absorbed.” (See: http://www.realtor.org/press_room/news_releases/2009/08/uptrend_pending)
Also, according to a new report that appeared on the Reuters Web site, White House Economic Adviser Larry Summers said recently that the foundations for a return to growth had been laid and there were signs that “economic life was getting back to normal.”
Speaking to an audience attending a social security conference at the Washington, D.C. National Press Club, Summers cited large and small signs the financial crisis was easing, although it will take a while for it to be over entirely, he conceded.
“In more obvious indicators like the stock market, less obvious indicators like credit spreads, the spread between LIBOR and federal funds, forward markets and what they suggest about housing prices…what one sees is a substantial return to normality,” Summers said.
