Pending Home Sales Surge, Mortgage Purchases UP Despite Interest Rate Rise | Irvine Real Estate : Irvine Homes for Sale

by Robert Mack on December 7, 2010

in Buyers, Latest News, Sellers

Pending Home Sales: A Big RISE

Coming off slightly lower numbers in existing home sales, the National Association of Realtors reported a 10.4% rise in pending home sales (October over September). While this number is 20.5% lower than last year, a tax credit did not exist during the same period this year. The increase was lead by the Midwest seeing a 27.3% increase in pending home sales over September. The Northeast also saw a large increase of 19.6%, followed by the South at 7.1%, and slight decline of 0.4% in the West.

The increase in pending home sales is a direct reflection of the increase in mortgage purchase applications over the last 8 weeks. Pending home sales are a forward looking indicator, leading me to believe the last couple months of existing home sales for 2010 could surprise to the upside. People are getting more confident about the economy and are reacting accordingly. With confidence comes household formation.

via biggerpockets.com for the complete article

Check out this great article that discusses how November 2010 pending home sales are higher than October 2010 – despite the slight increase in interest rates! Maybe buyers are seeing the true opportunity in the market now and jumping off the fence!

Posted on Irvine Orange County Real Estate Market News

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