The Pending Home Sales Index plunged in May 2010, just one month after the expiration of the federal home buyer tax credit program.
The Pending Home Sales Index is now at a record-low level.
A “pending home sale” is an existing home under contract to sell, but not yet closed. According to the National Association of Realtors®, 80 percent of homes under contract close within 60 days.
Because of this timeline, we can expect the summer’s Existing Home Sales to be weak across the Inland Empire, too. With fewer homes going under contract, fewer homes can close.
On the surface, May’s Pending Home Sales Index looks like terrible news for housing. And, if you’re a seller, it just might be. But, if you’re a buyer, the story reads differently. Just consider the market conditions.
A broad look at the housing market shows:
- Home supplies are rising again in most markets
- Home sales are falling in most markets
- Mortgage rates are at all-time lows
In other words, in most markets, more sellers are competing for fewer buyers, and the “winning” buyers are financing their homes at the lowest rates in history. This may cause home values to drop as well.
It’s an excellent time to be a home buyer in Temecula, Murrieta, Menifee, Corona, Riverside, and the entire Inland Empire. To find out how you can purchase a home with only .5% down payment, call Brad Yzermans at (951) 215-6119.