Home Sales in 2012 are Predicted to Reach 5 Year High
According to The National Association of Realtors existing home sales are predicted to jump 7 to 10 percent in 2012. If this happens, which we’re all hoping it will, that level of home sales will be the highest in 5 years.
Lawrence Yun, NAR chief economist, said “we’re seeing the continuation of an uneven but higher sales pattern” so far in 2012. “The spring home buying season looks bright because of an elevated level of contract offers so far this year.”
The recently released national Pending Home Sales Index declined 0.5 percent to 96.5 in February down from 97.0 in January, but is still 9.2 percent above the February 2011 level of 88.4. This information reflects contracts in the market, but not closings.
It’s worth noting that the Pending Home Sales Index (PHSI) is different when broken down by geographic areas of the US.
- The Northeast slipped 0.6 percent to 77.7 in February compared to January 2012, but is 18.4 percent higher than a year ago.
- The Midwest rose to 93.8 which is an increase of 6.5 percent compared to January 2012. That is a 19.0 percent increase year over year.
- The South fell to 3.0 percent to 105.8 in February compared to January, but is still 7.8 percent above a year ago.
- In February the West declined 2.6 percent to 99.3. This is 1.8 percent below February 2011.
All in all it is nice to see an increase in these numbers. It shows that people are out in the market looking at homes and more importantly, they’re so serious about purchasing them that they go under contract. It looks like more and more people are taking Barbara Corcoran’s advice and seizing this opportunity to buy a home at historically low mortgage rates.
If you’re planning on buying a home in the near future and adding onto these numbers, we’d love to be your partner on this adventure. Comment on this post or reach out to us through Facebook or Twitter and let us know how we can be of assistance to you.