First Time Home Buyers
The Pending Home Sales Index bounced back in December after November’s big drop.
A Pending Home Sale is one that is under contract, but not yet closed. Since most pending sales close within 60 days, it can be a very effective statistic for forecasting other forward-looking housing stats.
Based on today’s data that December’s Pending Home Sales were slightly better than November’s, it is fair to expect that January’s Existing Home Sales should be proportionately better than December’s.
For a first time home buyer, the last two months have created another opportunity. After dropping for seven consecutive months, December’s Housing Supply figures increased.
Since home prices are directly related to the simple laws of supply and demand, a little slow down is not bad news. Overall, however, it doesn’t look like the trends reversed. We are seeing a trend of higher home prices, higher mortgage rates, and the end of the first time home buyer tax credit is just around the corner.
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