Existing home sales started very slow earlier this year, but they are continuing to climb late into this year. We’re having a very strong fall and it is predicted that the fall will be one of the best we’ve seen in the last several years, and that the winter might be the best we’ve seen in the next decade. Because as we look at pending home sales, that is still continuing to rise.
There’s a momentum in the industry right now, and there are buyers out there looking. And what we know about this time of year, the buyers that are out there are serious buyers. Look at the foot traffic, the number of buyers actually going into houses now and looking to purchase; those numbers are “skyrocketing up.” Foot traffic at this time of the year usually levels off or starts to ddrop. The exact opposite is happening.
Pending home sales and foot traffic over July, August, and Septmeber dropped in 2013 but in 2014 it only dropped a little bit in august and actually picked up a bit in September, totally different than last year. We are also in a “momentum building process where we are not falling this fall but continuing to go forward. We are doing much better this fall compared to last fall- meaning the number of people looking at houses. So this means there will be an increase of the number of people putting in contracts, an increase in pending home sales wich means an increase in existing sales. We are way ahead over last September in the number of people out looking at houses!
There are more buyers out there because more credit is available. The availability of credit through a buyer is becoming easier and easier and the chance of them getting that mortgage is increasing. As credit becomes easier to get for the buyers, there are more and more buyers coming into the market! The one thing that buyers have to realize, they are buying one of the luckiest times in history regarding interest rates.
Recently interest rates have been balancing off and dropping a little bit over the last couple of weeks, but the major analysts – Fannie Mae, Freddie Mac, the National Association of Realtors, and the Mortgage Bankers Association – are projecting that they will be up more than one full percentage point. We know there are buyers out there ready to buy and their access to mortgage is at a high and that buyers are catching on especially with the interest rates where they are! Buyers are saying that they better buy now because they want to beat the increase in rates!
FROM THE NOVEMBER ISSUE OF KEEPING CURRENT MATTERS