Pending sales, which were widely expected to make a good showing in November,pulled back sharplyinstead. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts for existing home purchases, declined 2.5 percent to 107.3 in November from 110.0 in October. NAR said "the brisk upswing in mortgage rates and not enough inventory dispirited some would-be buyers." The decrease brought the PHSI to its lowest level since January of this year and it is now 0.4 percent below the index last November which stood at 107.7.
Analysts polled by Econodayhad been upbeatabout the November outlook. The consensus was for an increase of 0.5 percent with some analysts predicting as much as a 2.0 percent gain.
Lawrence Yun, NAR chief economist said, "The budget of many prospective buyers last month was dealt an abrupt hit by thequick ascension of ratesimmediately after the election. Already faced with climbing home prices and minimal listings in the affordable price range, fewer home shoppers in most of the country were successfully able to sign a contract."
Only one of the fourregions displayed any strength in November. Pending sales in theNortheastwere up 0.6 percent to 97.5 and are 5.7 percent higher than in November 2015.
TheMidwestsaw contract signings decline 2.5 percent to 103.5, falling behind the previous November by 2.4 percent. Sales in the South were down 1.2 percent to an index of 118.7, this is 1.3 percent behind the level a year earlier. TheWestposted the largest loss, 6.7 percent, and a year-over-year drop of 1.0 percent.
Yun says higher borrowing costs somewhatcloud the outlookfor the housing market in 2017. NAR's most recent HOME survey, found that renters have less confidence about the present being a good time to buy than they had at the beginning of the year. On the other hand, Yun says that the impact of higher rates will be partly neutralized by stronger wage growth because of the 2 million net new job additions expected next year.
"Healthy local job markets amidst tight supply means many areas will remain competitive with prices on the rise. Those rushing to lock in a rate before they advance even higher will probably havefew listingsto choose from," said Yun. "Some buyers will have to expand the area of their home search or be forced to delay in order to save a little more money for their down payment."
NAR continues to forecast that existing home sales will close out 2016 at a pace of about5.42 millionunits, up from the 5.25 million sales in 2015, becoming the best year since 2006 with its 6.48 million sales. Sales will increase by about 2.0 percent in 2017 to 5.52 million and the median existing home price will increase by about 5 percent this year and 4 percent next year.
"Much more robust new homeconstruction is neededto relieve inventory shortages and lessen the affordability pressures present throughout the country," added Yun.
The Pending Home Sales Index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population. Pending sales are generally expected to close within two months of contract signing.
As always, if you are looking for an experienced agent to help guide you thru your Real Estate maze, call or email me at 952-261-9695 Angela@NieceHomes.com
Author:Angela Niece Phone: 612-305-8487 Dated: December 28th 2016 Views: 366 About Angela: ...
Located in the 11 county metro, The Trust Team is a leader in the Minnesota real estate market. The Trust Team was founded in 1978, yet represents the best of traditional market knowledge, cutting edge technology and top -notch customer service - all provided by 10 of the most experienced agents in the industry.
We combine the very latest in proprietary internet marketing, and make use of the most current and relevant real estate and social media platforms. We are considered leaders and innovators - always willing to try what is new, and use what is proven. Joe Niece, has more than 3000 past real estate clients, and is an information and renowned internet Guru. His wife Angela Niece and partners, Nikki Moeller, Matt Wolfe, Mike Finstad, Joe Jones, Cory Kingbay, Mary Ellen McGlone, and Stieg Strand have created a most unusual real estate team. 2015 was our best year ever with 498 satisfied clients which gave us the honor of being the #2 team in all of Minnesota. We want your business, promise your complete satisfaction and we are committed to your success !
Jilly walks us through her amazing DIY project! She put together a bar
"My home had failed to sell with my previous agent and I take the blame for that. I did not ask the correct questions and thought my home would sell quickly. I was so frustrated by the time that I had been on the market five months that I fired my first agent a month early. I was not going to make the same mistake again. My wife and I contacted five agents that had good reputations. The first one seemed good and she told us that our home was worth about what we told him we thought it was worth.
When the second agent came over, she seemed good also. I was excited with the price that the first agent had told us so I told the second agent that we thought our home was worth about 20,000 dollars more and we were shocked when she showed us that she could get that.
We told the third agent that we thought our home was worth 25,000 dollars more and amazing, she told us that she could get us that much for our home.
It was now obvious that the agents were telling us whatever we wanted to hear so we decided that we would see how far it would go. Every agent that we interviewed asked us what our home was worth and every agent told us close to the price we told them. We decided to try the reverse and we told the next two agents that our home was worth 50,000 and 100,000 less then the first agent told us and they showed us those numbers were correct. We were so frustrated that it was comical.
The on the 12th agent, we interviewed Angela. We were professionals by now and thought that we had heard everything. Angela was different. She did not tell us that our home was the best or things like that. She talked to us, asked about the home. Took notes as we showed him the home and she talked about all the things that she was going to do to market our home. It took him an hour to talk about marketing and she was pretty excited about quite a bit of it. Then she pulled out his laptop and had us sit on each side of him and she started doing a market analysis with us. She showed us exactly what she was doing, what criteria she was searching, to find similar homes etc.
As she was working on it, my wife started to tell him what she thought our home was worth and she stopped her in mid sentence and told her that she did not want to hear any numbers from us until she had told us his number. She used a phrase that my mother use to use and said that she did not want to sell his soul to the devil and be tempted to tell us what we wanted to hear vs what the truth might be. She said she would rather talk about his value vs our value if they were not the same. As she continued working with us and asking us about pictures from each of the homes that we looked at on his computer, she narrowed down our value and then told us that our home was worth about 325,000 dollars. Not to be thrown out of our game, I told him that I thought she was 50,000 dollar low and she asked what our home had that make it worth 50,000 more than the seven comparable homes that the three of us had picked together just 15 minutes earlier. I told him that our home was in better shape and she pulled up the pictures of the similar homes and said that she did not see a big difference between most of them and our home.
My wife then told him the range that other realtors had told us and she asked if we had the information that the other Realtors had left. We did and we showed him. She started showing us different foundation sizes, lot sizes, great rooms and other things that she said determined value on the homes, that the other Realtors that told us our home was worth 50-100k more, and it was obvious that she was not going to take the bait so we came clean and told him what we had been thru and that she was the 12th Realtor that we had interviewed.
We listed with Angela and she sold our home in 17 days. Angela was fun to work with and the entire time we worked with him it was smooth and she was easy to get a hold of if we had questions. I would recommend anyone that is buying or selling to work with Angela as she is willing to tell you the truth, spend time explaining what sells homes and what a home is worth and worked very hard.