While many pockets of our economy are still feeling the effects of the U.S. economic recession, it seems that real estate has already begun to turn the corner. Nationwide, pending home sales rose 6.7% in April 2009. That is the largest monthly increase in more than 7 years, and may be a sign that sales are finally beginning to pick up. The 6.7% increase exceeded all of the talking head analysts’ forecasts, and was the largest increase since October 2001, when pending sales rose 9.2%. This was a measurement of pending home sales which reflects the reality that there is a month to 2 month lag between a contract acceptance and a deal closing. As such, this increase is actually a measurement of the future of the re-sale market. That means, of course, that existing home sales are about to climb in coming months. This promising percentage was probably influenced by the new $8,000 tax credit for first time home buyers, that was part of February’s economic stimulus bill. Just so you know, buyers need to close escrow on their new home purchase by November 30th of this year in order to claim the credit. That being said, the time to begin to look and buy in upon us now.

With many of the current home purchases being part of the short sale market, home buying can become a lengthy process and buyer’s can no longer expect 30 day closings. In our experience, and it is broad, many short sales take in excess of 60 days to get approved and that is only if your realtor is experienced in them. So, while November may seem far away, in the current market you may need every day between now and then to get your transaction done. Even the national media has noted that less expensive foreclosures and short sale properties have begun to launch bidding wars in Las Vegas and Phoenix.

All this to say that while pending home sales are on the rise and that is a good thing, it doesn’t mean that you will necessarily have an easier time finding or buying a home. Essentially, we are looking at classic macro-economics. Demand has gone up and in turn supply is going down. The desirable homes are selling more quickly or being held up by a bid war leaving all but the most cash rich buyers out of luck. So, for all of you who were looking for the market to bottom or turn . . . its happened. Let’s get your home search started today!

For updated graphic analysis of this trend please go to www.altosresearch.com/research/AZ/GOODYEAR

Tags: First Time Home Buyer's Tax Credit, First Time Home-Buyers, Foreclosure, Housing Recovery

Posted on Monday, June 15th, 2009 at 3:00 pm and is filed under Housing Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.