Pending Home Sales Are The Best Since 2003

Pending Home Sale Up Again!

The National Association of REALTORS has announced that pending homes sales are up again in June. This is the 5th month in a row that these anticipated real estate sales have been up - something that hasn't happened in six years since July of 2003.

From a Pending Homes Sales Index (PHSI) of 80.4 in January 2009, activity has grown to 94.6 as of June. That is an increase of over 17% since the beginning of the year. An index of 100 is based on 2001 sales and coincides with a historically high level of home sales activity. The index measures housing contract activity. It is based on signed real estate contracts for existing single-family homes, condos and co-ops. A signed contract is not counted as a sale until the transaction closes. Modeling for the PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years.

For a video of the announcement, go to:

http://link.brightcove.com/services/player/bcpid31285236001?bctid=30945467001

Jim Armstrong

BUYER POWER!

For the 11^th consecutive week Freddie Mac's Primary Mortgage Market Survey showed that the average interest rate for the 30-year fixed-rate mortgage (FRM) broke another record in the 37-year history of the survey. During the week ended January 15 the rate averaged 4.96 percent with 0.7 point, down from last week's average of 5.01 percent with 0.6 point.

This is the 11th week in a row that mortgage interest rates have dropped, due in part to a slowing economy, and also to the actions that the Federal Government has been taking. Some (healthy) local banks have been receiving funds from the Feds specifically for the purpose of supplying money for mortgages to local consumers.

We have had clients close on homes with mortgage rates even lower - 4.5%! This equates to a mortgage payment of only $1721.00 per month on a $350,000 home with just 3% down.

You could buy a $200,000 condo (or even single family) with 3% down ($6,000) and have a mortgage payment less than $1000! It's got to be cheaper than what you are currently paying for rent. Plus, unlike rent, your mortgage payment is mostly tax deductible, giving you a larger tax refund. Add on the $7500 first time homebuyer tax credit, and you would have to be crazy not to buy a home right now!

I know what you are thinking - "But you are a Realtor. Of course you want me to buy a home now. That's how you make your money and you have lots of Christmas bills to pay off!"

True, selling real estate is how a earn a living. But I earn clients for life by giving them what I believe to be good, accurate information that is going to help them in their decisions when buying or selling a home. I just recently purchased a home myself because of these ideal buying conditions. Though I had owned property before, most recently I had been renting - and waiting for the right time to buy.

This IS the right time.

Jim Armstrong