Florida Real Estate News for Palm Coast and Flagler County Florida
Facebook | Twitter | LinkedIn | Contact | Search
Menu

Nationally, Pending Home Sales Down in December but Remain on Uptrend

Pending home sales declined in December but have stayed above year-ago levels for 20 consecutive months, according to the National Association of Realtors®.

By Toby Tobin
Palm Coast, FL – January 28, 2013 – Nationally, pending home sales declined in December but have stayed above year-ago levels for 20 consecutive months, according to the National Association of Realtors®. Pending home sales in the South declined 4.5 percent to an index of 111.5 in December but are 10.1 percent higher December 2011.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, fell 4.3 percent to 101.7 in December from 106.3 in November but is 6.9 percent higher than December 2011 when it was 95.1. The data reflect contracts but not closings.
Lawrence Yun , NAR chief economist, said there is an uneven uptrend. "The supply limitation appears to be the main factor holding back contract signings in the past month. Still, contract activity has risen for 20 straight months on a year-over-year basis," he said. "Buyer interest remains solid, as evidenced by a separate Realtor survey which shows that buyer foot traffic is easily outpacing seller traffic."
Yun said shortages of available inventory are limiting sales in some areas. "Supplies of homes costing less than $100,000 are tight in much of the country, especially in the West, so first-time buyers have fewer options," he said. "We expect a seasonal rise of inventory in the spring to help, but a seller's market may be developing. Much of the West is already a seller's market for homes priced under a million dollars, but conditions are much more balanced in the Northeast."
Even with tighter inventory, a pent-up demand and favorable affordability conditions bode well for the market. Yun expects existing-home sales to increase another 9 percent in 2013, following a 9 percent rise in 2012.
The PHSI in the Northeast fell 5.4 percent to 78.8 in December but is 8.4 percent higher than December 2011. In the Midwest the index rose 0.9 percent to 104.8 in December and is 14.4 percent above a year ago.  In the West the index fell 8.2 percent in December to 101.0 and is 5.3 percent below a year ago.
reader comments

 
add a comment
All fields are required.
Name:
Email: (not displayed)
Address: (not displayed)
Phone: (not displayed)
Comment Title:
Comments:
Security Word:
Not readable? Change text.

Please Note:
Comments are screened for appropriateness, delaying posting of your comment.
Comments containing hyperlinks are blocked.

   

 
Google

Web www.gotoby.com
permits
Archive
Don "Toby" Tobin is a licensed real estate professional affiliated with Take Action Properties LLC. Toby is a member of the Flagler County Association of Realtors®, the Florida Association of Realtors, Enterprise Flagler, Flagler Home Builders Association, and the National Association of Realtors.

GoToby.com proivdes real estate news, commentary, and analysis for Palm Coast and Flagler Country Florida, as well as Realtor® referrals and consultation to buyers, sellers, and developers.