We have great news: pending home sales are up, up, up for the sixth consecutive month.  And, according to the National Association of Realtors®, this is also the first time in six years that the market has seen such a streak. 

Here’s a quick look at the Pending Home Sales Index according to realtor.org.  A forward looking indicator, which is based on contracts signed in June, rose 3.6% to 94.6% from 91.3% in May and is 6.7% above June 2008, when it was 88.7%.  July 2003 was the last time there were five consecutive monthly gains.

We believe that a combination of positive market factors is what’s fueling the gains.  Affordable home prices, low interest rates and a large selection of homes are also encouraging buyers who have been procrastinating about buying a home.

The lower priced homes have seen the most activity.  Many first-time buyers are taking advantage of the $8,000 tax credit before the November 30, 2009 deadline. 

More statistics show that Pending Home Sales rose in the northeast 0.4% to 81.2% in June and is 5.8% above one year ago.  Pending Home Sales in the Midwest increased 0.8% to 89.9% and is above June 2008.  There was a big jump in the index in the South from 7.1% to 100.7% in June and is 8.9% higher than one year ago.  The West’s index rose 2.9% to 100.4%.  However, it was 0.2% below June 2008, which isn’t down too much.

Currently, a median income family who earns $60,700 could afford a home that costs $289,100 if they put 20% down.  That is assuming they dedicate 25% of their income to the mortgage principal and interest.

Everyone likes good news about the real estate market, especially when it’s news like having Pending Home Sales being up for six consecutive months, which hasn’t happened in six years.

Realtors® Tom & Bev Herring ~ Tulsa, Oklahoma Real Estate

Discover the Difference