According to the National Association of Realtors, pending home sales activity surged as buyers took advantage of low prices and affordable interest rates.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in August, jumped 7.4% to 93.4 from 87. in July, and 8.8% higher than August 2007 when it was 85.5. The index is at its highest level since June 2007 when it was 101.4.
The Pending Home Sales Index was stronger in the west, and surged 18.4%, and is 37.8% higher than a year ago. California, Nevada, and Arizona saw buyers taking advantage of lower home prices and interest rates leading the west to the highest percentage PHSI gain.
According to the NAR, Existing-home sales are projected to rise next year. Existing home sales are projected at 5.04 million this year and 5.41 million in 2009. Prices are projected to increase 2 to 3 percent next year.
The 30-year fixed rate mortgage will probably average around 6.1 percent in the forth quarter and rise
gradually to 6.6% by the end of 2009.
Freddie Mac reports a drop in the 30-year mortgage rate to 5.91% during the week ended Oct. 9th, marking the first decrease in three weeks.
For those South Lake Tahoe Real Estate bargain hunters, now may be the time to buy. Prices are expected to increase, sales are expected to increase, and mortgage rates are also expected to increase. This means that there will be less selection of houses to choose from, and more buyer competition.
The challenge will be finding qualified buyers who will be able to obtain loans in this tough lending environment!
Leave a Reply