Scott Kinne First Heritage Mortgage

Scott Kinne's Mortgage information Blog

  • About Scott
  • Testimonials
  • Resources
    • First Time Home Buyer Tips
    • First Time Home Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Affordable Credit Repair
    • Interest Rates
    • Loan Programs
    • Loan Process
    • Loan Checklist
    • Mortgage Glossary
    • Mortgage FAQ
  • Main Website
  • Contact
  • Apply

The Number Of Homes Under Contract Soar In April. Are Buyers Losing Their Negotiation Leverage?

June 3, 2009 by Scott Kinne

Pending Home Sales April 2009The number of homes under contract to sell soared in April, climbing nearly 7 percent nationwide versus a month ago.

It’s the third straight month in which the Pending Home Sales Index gained and the biggest monthly jump since October 2001, the month prior to the end of the Early 2000s Recession.

A “pending” home sale is one that’s under contract to close, but has yet to do so.

The Pending Home Sales Index is an imperfect statistic because not every home under contract makes it to closing, but the data can a reliable indicator of home buyer activity.

It’s not tough to understand why homes-under-contract are spiking:

  1. There’s a $8,000 tax credit for first-time home buyers
  2. Conforming and FHA mortgage rates are hovering near 5 percent
  3. Home prices are still soft nationwide

These elements are combining to make homes more affordable than they’ve been in the recent past. Indeed, in April, the Home Affordability Index posted its second highest reading since 1970.

We can’t know if home prices will rise or fall going forward, but if Pending Home Sales translate into closed home sales, values will be pressured to rise. This is because each closed transaction takes a home “off the market”, reducing the supply of available properties.

If demand rises while supplies fall, sellers regain the upper-hand in negotiations and higher prices are the inevitable result.

An estimated 80 percent of all Pending Home Sales close within 2 months.

Filed Under: Uncategorized

Scott Kinne

Contact Scott

Vice President, Senior Loan Officer
NMLS ID #182351
Office: 703.293.6146
Mobile: 571.237.6241
Fax: 571.317.2478
skinne@fhmtg.com

Licensed in
MD, DC, VA, SC, FL, and GA.

  LOAN APPLICATION
  FREE RATE QUOTE

Connect with Me!

Sign Up For My Free Newsletter

Categories

Recent Posts

  • 5 Things To Know About Severe Weather And Homeowners Insurance
  • Best Things To Do Now To Get Your Finances Mortgage Ready
  • Looking to Pay Back Your Mortgage Faster? Three Reasons to Consider Switching to Bi-weekly Payments
  • Understanding the Differences Between ‘Prequalified’ And ‘Preapproved’ For a Mortgage
Equal Housing Lender
nmlsconsumeraccess.org
First Heritage Mortgage, LLC, Company NMLS ID #86548

Our Location

3201 Jermantown Road
Suite 800
Fairfax, VA 22030
Business: 703-293-6146
Cellphone: 571-237-6241

Copyright © 2023 · Powered by MySMARTblog

Copyright © 2023 · Genesis Sample Theme on Genesis Framework · WordPress · Log in