So, What’s a Pending Home?
First off, the Pending Home Sales Index moved higher in March as home sales were spurred by low mortgage rates and an expiring tax credit.
A “pending home” is a property that is under contract to sell, but not yet closed. Offer’s written, now it’s up to the mortgage approval, appraisal and inspection.
March marks the second straight month in which the Pending Home Sales Index improved after a series of weak showings this past winter.
March showed a 5% increase over the month, but the Pending Home Sales Index is still off its October 2009’s peak. October 2009 is a comparable period to March 2010 in that it marked the 1-month deadline before the home buyer tax credit’s initial expiration date. The credit was later extended to April 2010. But, you already knew that.
Home Supplies Drop and Prices Go Up
That said, March’s surge in sales is being felt on the street. And, we’re not talking about Wall Street 🙂
Home buyers in Urbandale no doubt noticed the change in activity. Around the country, multiple offer situations were more common last month and “right-priced” homes tended to go under contract very quickly.
The increase in March’s Pending Home Sales is diminishing the nation’s home supply which, in turn, should cause prices to rise in most markets — including Beaverdale.
Today’s buyers should consider making an offer sooner rather than later. Looking at the information, it appears the best time to have found a “deal” on a home may have been in February. Don’t let that discourage you though, the buying’s still good!
If you need help, feel free to call (contact information on this page) or email me! I’d love to help you out.
