Seller’s in the Bay Area Housing Market Looking to Have an Advantage This Summer

Seller’s in the Bay Area Housing Market Looking to Have an Advantage This Summer

Pending Home Sales (2010-2011)The National Association of REALTORS® Pending Home Sales Index rose for the third straight month last month.

A “pending home sale” is a home under contract to sell, but not yet closed.

The Pending Home Sales Index rose 5 percent in March, posting its second-highest reading since April 2010. Not coincidentally, that month marked the expiration of last year’s federal home buyer tax credit.

Looking Forward…

Home buyers and sellers in Dublin would do well to watch the Pending Home Sales Index each month. This is because — unlike most government and private data — the Pending Home Sales Index is a “forward-looking” indicator.

Because 80% of “pending” homes close within 2 months, and a significant share of the rest close within months 3 and 4, the Pending Home Sales Index tends to correlate to future strength (or weakness) in housing.

The Pending Home Sales Index, in other words, is an excellent precursor to the Existing Home Sales report, issued monthly.

By region, the Pending Home Sales Index varied last month.

  • Northeast : -3.2% from February
  • Southeast : +10.3% from February
  • Midwest : +3.0% from February
  • West : +3.1% from February

All 4 regions were worse from a year ago.

Get your Magnifine Glass Out

As with everything in housing, however, we must remember that real estate is neither national, nor regional. It’s local.

To get local real estate data , talk to a real estate agent that specializes in that area. It’s the best way to know what’s happening on the street level.

Get Pre-Approved So You Can Move Quickly

When you’re shopping for a home this Spring, have a pre-approval letter. It not only shows the seller and listing agent that you’re serious, but just by getting pre-approved, you’re able to bid and close on your home faster than the next guy. And speed helps.

All things equal, sellers and even more so banks want to close quickly to move their REO property. If you’re pre-approved, you can do that.

To get a free pre-approval (and to check mortgage rates while you’re at it) Give me a call at 925-708-5400 or shoot me a message below to get started! I love to work with my readers!

 

 

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