December Real Estate Sales Finish Strong. However, pending sales still up year over year showed a slight decrease from a 19 month high. Despite the dip in pending sales, the trend stays favorable for a strong 2012.
December’s Real Estate Sales
In the latest numbers released by the National Association of Realtors data shows total existing-home sales1 rose 5.0 percent to a seasonally adjusted annual rate of 4.61 million in December from a downwardly revised 4.39 million in November, and are 3.6 percent higher than the 4.45 million-unit level in December 2010. The estimates are based on completed transactions from multiple listing services that include single-family homes, townhomes, condominiums and co-ops.
Lawrence Yun, NAR chief economist, said these are early signs of what may be a sustained recovery. “The pattern of home sales in recent months demonstrates a market in recovery,” he said. “Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market.”
Pending Real Estate Sales
In the outlook for what is to come they also have the Pending Real Estate Sales. After reaching a 19-month high, pending home sales eased in December but stayed above year-ago levels, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, declined 3.5 percent to 96.6 in December from 100.1 in November but is 5.6 percent above December 2010 when it was 91.5. The data reflects contracts but not closings.
Lawrence Yun, NAR chief economist, said the trend line remains positive. “Even with a modest decline, the preceding two months of contract activity are the highest in the past four years outside of the homebuyer tax credit period,” he said. “Contract failures remain an issue, reported by one-third of Realtors® over the past few months, but home buyers are not giving up.”
In Lee and Collier County we have seen a majority of our sales secured with cash instead of financing. This makes the pending sales that much more important since cash deal seem to fall apart a lot less frequently.
Stay tuned for the latest release of the numbers for SW Florida from the Realtor Association of Great Fort Myers and The Beach. The Naples Realtor Association does not release their numbers.
Source: National Association Of Realtors