Pending Home Sales Ease in February but Solidly Higher Than a Year Ago

Under contract sales are down in the month of February but still higher then last year....I think this is because of the number of homes for sale on the market ….this falls back to inventory.

Listing confidence is what is holding us back, we need that confidence! This effects all of us, currently in the market we  have first time home buyers looking for properties...first time home buyers purchasing the homes that allow the families who have out grown their property  to move to the next level...which in return allows the couples who kids have  grown and now their home is to big to moving into there retirement home and allow them to travel and enjoy their life's and grandkids.

So do you see the importance of getting your home on the market giving you this opportunity to move either up or down depending where you are in your life's.

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Washington, March 26, 2012

Pending home sales were down slightly in February but remain notably above the pattern in the first half of last year, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, eased 0.5 percent to 96.5 in February from 97.0 in January but is 9.2 percent above February 2011 when it was 88.4. The data reflects contracts but not closings.

Lawrence Yun, NAR chief economist, said we’re seeing the continuation of an uneven but higher sales pattern. “The spring home buying season looks bright because of an elevated level of contract offers so far this year,” he said. “If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, that’s what we’re expecting with sales rising 7 to 10 percent in 2012.”

The PHSI in the Northeast slipped 0.6 percent to 77.7 in February but is 18.4 percent above a year ago. In the Midwest the index jumped 6.5 percent to 93.8 and is 19.0 percent higher than February 2011. Pending home sales in the South fell 3.0 percent to an index of 105.8 in February but are 7.8 percent above a year ago. In the West the index declined 2.6 percent in February to 99.3 and is 1.8 percent below February 2011.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

 

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*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.

NOTE: Existing-home sales for March will be reported April 19 and the next Pending Home Sales Index will be released April 26. The Investment and Vacation Home Buyers Survey, covering transactions in 2011, is scheduled for March 29; all release times are 10:00 a.m. EDT.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.

What To Expect From Closing Costs

This is some great information regarding closing cost. These cost are sometime over looked and can make or brake a deal.

The average price for closing cost are 3.5% to 4% of the purchase price. As a home buyers you should expect somewhere around 7% in order to purchase your new home - 3.5% down payment and 3.5% to 4% for closing cost, closing costs can be paid for by the seller if negoicated in the offer.

This is one reason it is important to have an Agent looking out for you needs and MONEY

What To Expect From Closing Costs

Posted by Derek Hartley

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Sellers often pay most if not all closing costs for VA borrowers.

First-time homebuyers are often shocked when they discover that the list price isn’t exactly what a new home will end up costing.

Securing a home loan comes at a price beyond the loan amount. That price comes in the form of closing costs, which are fees and charges you pay in order to obtain a purchase or refinance loan.

But what exactly are closing costs and how will they affect your purchase?

 

 

What Are Closing Costs?
There are a host of types, including fees to the lender, a title company, an appraiser, a pest inspector and others.

But borrowers also have to worry about prepaid costs, which are up-front payments for things like homeowners insurance, property taxes and homeowner association dues. Together, closing costs and prepaid costs can add up to more than 5 percent of the loan amount.

Your closing costs can vary from your neighbor’s depending on a number of factors, but these often include things like:

• Title Policies
• Origination and underwriting fees
• Notary Fees 
• Attorney Fees
• Recording Fees
• Transfer Taxes (City, County & State)
• Appraisal Costs

Who Pays Closing Costs?
Closing costs cannot be financed into your loan. They have to be covered at the closing table.

Now it’s time for a deep breath and some good news: Veterans typically pay only a fraction of those costs. This is one of the most dynamic aspects of a VA loan. Sellers can pay most or all of the buyer’s closing costs and prepaid items.

But just as the VA caps what a veteran can pay in closing costs, so, too, does the agency cap what a seller can pay for a borrower. Sellers can pay no more than 6 percent of the loan value in closing costs and concessions. The positive side is that this 6 percent limit is generally more than enough to cover the fees.

You may be asking yourself why anyone would want to pay thousands of dollars in closing costs when they aren’t obligated to and the simple answer is because they want to sell their home. Current conditions truly make for a buyers’ market so don’t be afraid to ask the seller to cover these costs.

If the seller is unwilling to cover your fees but you don’t have the cash on hand, consider increasing your offer by the cost of closing costs so the seller can cover it automatically, provided that works with your preapproval amount and ultimately the home appraisal.

Hopefully this rundown helps demystify closing costs and explains some of the different options you have for covering them without breaking your budget.

This goes out to my oldest son I love you