Pending home sale contracts (PHSC) are NOT closed transactions, BUT it is a good leading indicator of the positive momentum we are experiencing in the real estate market.
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| Buyer's are Buying! |
In the West, PHSC's surged to 14.9% higher than a year ago at this same time (November numbers) and led the nation. The fact that contract failure has been unusually high, may result in 1/2 or less of these contracts actually closing, but the higher numbers across the nation has been encouraging. I have previously blogged about the need for a
full application, credit report and automated underwriting approval to accompany every submitted offer to stop this increasing problem of contract failure.
The last time PHSC numbers reached this level was in April, 2010 when first time home buyer's were rushing to meet the expiration of the tax credit available to them if they closed before April 30, 2010. What a mad dash it was!
With home affordability at an all time high (lower home prices, higher income levels, and historically low interest rates), coupled with with
pent up demand, it is no wonder
the November, 2010 PHSC number was the best in 19 months!
