Decline in pending home sales eases

Decline in Pending Home Sales Eases(March 6, 2006) -- A slide in pending home sales is beginning to level out, an indication of a more sustainable level of home sales in the months ahead, according to the NATIONAL ASSOCIATION OF REALTORS®. The Pending Home Sales Index, based on contracts signed in January, slipped 1.1 percent to a level of 116.3 from an upwardly revised index of 117.6 in December, and is 4.8 percent below January 2005. After hitting a record of 128.2 last August, the index declined at a more rapid pace through December, averaging nearly 3 percentage points per month.The index is derived from pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed; pending home sales typically are finalized within one or two months of signing.An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined, and was the first of five consecutive record years for existing-home sales.David Lereah, NAR’s chief economist, had foreseen a flattening in the index. “This looks like we’re touching down for the soft landing we’ve been expecting,” he said. “We are at a much more sustainable level of home sales now – a welcome cooling from the super-heated conditions that were driving exceptional price gains. This will give people the time to be more thoughtful about a process that is the biggest single investment most of us make in our lifetime.”“Home sales at this level are historically strong and provide a solid foundation for the overall economy,” he said. “Business spending will lead economic growth this year, and housing wealth will help to support consumer spending.”Regionally, the PHSI in the Midwest rose 6.0 percent in January to 114.3 but was 1.0 percent below January 2005. In the Northeast, the index increased 0.4 percent to 94.8 but was 12.0 percent below a year ago. The index in the West declined 1.9 percent to 115.8 in January and was 13.6 percent lower than January 2005. The index in the South dropped 5.1 percent to a level of 128.6 in January but was 2.0 higher than a year ago. — NAR

Holding Steady Just Under 3000 Homes for Sale

The Hernando County Real Estate market seems to be stabalizing with just under 3000 residential homes for sale. Sales (# of closings) are down about 40% from their highs this past summer and down about 8% year over year from the same period last year. New home builders are still building, new developments are still on track & filling up with new home owners but the investor flips in these developments are sitting. It is my opinion that these investors with vacant homes will have to drop prices due to the lack of demand & glut of new homes. The builders with inventory also need to sell to recoup building costs. Prices in general are drifting down & sellers need to realize that their home is only worth what a qualified buyer is willing to pay. With 2000 more homes for sale than there were last summer my advise is to shop around and dont be afraid to insult a seller or two. There are some bargains to be had both in the new home inventory market & in the resale market. As an example I have a 2 story 4 bedroom 3 bath plus office and a heated pool in great shape in a great neighborhood for $262,900. This home has over 2200 living square feet. If this is something that might be of interest call me 352 279 4408. The bargains will not last. The overpriced homes will just sit, sit, sit.