by Alexis Cala, PICurrent Assistant Producer
Courtesy of Jeanine & Preston
It looks like the housing market is trying to get back on its feet again. A new report says pending sales of previously owned U.S. homes jumped by 6.7 percent in April.
The National Association of Realtors (NAR) said its Pending Home Sales Index rose for the third straight month. It was also the largest jump in almost eight years and better than economists were expecting.
A home sale is pending when the contract has been signed but the transaction hasn’t closed. The NAR index tries to measure which way the housing market is going in the future based on these pending sales. With the recent data, many are hopeful that this is a sign that home sales are finally making a comeback (read the full story on The Associated Press).
There are a few reasons pending home sales spiked:
- Buyer’s snatching up low-priced, foreclosed properties
- Record low mortgage interest rates
- First-time home buyer tax credit
This may be a good sign, but it doesn’t mean everyone should run out and buy a home. Economists caution that home prices overall may take a while to become stable again mainly due to the heap of unsold properties around the country. In fact, there are a record number of homeowners that are still having problems as many find themselves late on payments or in foreclosure (Check out Colin’s post for more on housing troubles, here).
Before you buy, sell, or fall behind on your mortgage, visit our sister site, The Beehive, for more information about buying a home and keeping up on your payments. Also, be sure to take a look at the section on how to prevent foreclosure.
For more on pending home sales, please visit:
