Contracts To Buy Homes Spike 4.6% In January

Cynthia BaileyHome Buyers, Home Sellers, Luxury Homes, Real Estate Investing, Second Homes, VA Home BuyersLeave a Comment

When a contract is signed to buy a house, that home’s sale is considered pending. It isn’t final until closing, which typically happens a few weeks later. However, since contract signings usually lead to final sales, they’re a good way of measuring current buyer interest and an indicator of what home purchase activity will look like a month or so down the road. That’s why January’s Pending Home Sales Index from the National Association of Realtors is encouraging. The report shows a 4.6 percent increase in the number of signed contracts in January compared to the month before. All four major regions of the country saw growth. Lawrence Yun, NAR’s chief economist, says there are a number of factors that are driving the improvement. “A change in Federal Reserve policy and the reopening of the government were very beneficial to the market,” Yun said. “Home buyers are now returning and taking advantage of lower interest rates, while a boost in inventory is also providing more choices for consumers.” According to Yun, there’s reason to believe the gains will continue. Income is rising faster than home prices in many areas, job creation continues to be strong, and mortgage rates look like they’ll be steady in the near term. In short, conditions are stabilizing just as the market readies itself for spring. More here.

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Cynthia Bailey

Cynthia Bailey

Leveraging my experience of service to others, my passion for real estate and degree in Interior Design I seek to provide my clients with the best possible experience in finding their perfect place or selling their unique home. I believe in representing and educating my clients so they can make the best decision possible, while also providing advice on staging and preparing their home for sale. The seller is able to highlight the beauty of their home while the buyer is able to envision their future home. I call this the “win-win” of real estate.

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