By: Dennis Norman
Lawrence Yun, Chief Economist, NAR
It appears that lower prices along with low interest rates are bringing buyers back into the market as the market continues to show signs of life and gives us hope that we may be near the bottom.
The National Association of REALTORS(R) issued their Pending Home Sales Index Report for May which only showed a modest increase of 0.1% over April, however May marks the fourth month in a row the index has increased. Not since the middle of the boom (October, 2004) have we seen pending sales up four months in a row.
Lawrence Yun, NAR chief economist, does warn though that there may be delays in getting these new sales closed saying “closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions.” Yun is no doubt referring to the new, and controversial, Home Valuation Code of Conduct (HVCC). Yun goes on to say “rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.”
Homes continue to remain very affordable according to the National Association of REALTORS(R) housing affordability index for May. The household income necessary to buy a median priced home in the U.S. has dropped over 25% in the past year, down to $35,424.00.
To see an interview with Lawrence Yun by REALTOR(R) Magazine click on the video below.
Related posts:
- Real estate market continues to show life
Sales up for fifth month in a row - Pending Home Sales Increase in July marking six months of increases; Boom or Bust?
- Pending home sales index jumps in April: Third month in a row sales have increased
- Home sales activity in July down from month before; still better than last year
- Pending Home Sales Increase In April as Buyers Rush to Beat Tax Credit Deadline