Pending Home Sales Down but Housing Affordability at Record
March 03, 2009
Today, the National Association of Realtors announced: pending home sales declined on the heels of a weakening economy and with some buyers waiting for clarity on housing stimulus provisions. The release indicated that the Pending Home Sales Index, a forward-looking indicator based on contracts signed in January, was at the lowest level since tracking began in 2001. What's more, it also stated that NAR's Housing Affordability Index rose 13.6 percentage points in January to 166.8, a new record high--showing that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970. So what does all of this mean to your marketplace?
In the release, NAR Chief Economist Lawrence Yun also stated, "Conditions have been aligning very favorably for home buyers with the exception of consumer confidence. But I am hopeful that sales will turn around by late spring and early summer because history suggests that home sales can rise even in times of job losses when housing affordability rises."
So, how are you working toward creating /promoting consumer confidence in your marketplace to help consumers in your area realize the opportunity this economy brings?