Tips On The Real Estate Market From The Tucson Realty Review June 2014 Issue
The Tucson Realty Review June 2014 And A Look Forward
Welcome to the Tucson Realty Review June 2014.
Becoming familiar with the demand for housing can give buyers. sellers and real estate market pundints insight into a local economic climate. Which is what makes pending home sales a key barometer of the housing marketplace and the economy’s future course.
This single statistic is so crucial that the National Association of REALTORS® (NAR) created the Pending Home Sales Index. This index monitors sales contracts on existing homes not yet closed. Typically, it can take 4 to 6 weeks to close after a contract is finalized.
Housing, just like the rest of the economy, continues a very slow recovery. Mortgage rates are slightly higher than a year ago. As the Federal Reserve continues to “taper” its stimulus suggests interest rates will likely begin to rise in 2015.
Lending standards also are very tight and the lending process offers few if any variations from those standards. One of the victims of these tighter lending standards are first-time home buyers. A critical segment to a healthy real estate market. Many more first-time buyers are needed to absorb the homes of people who want to move up.
Nationally, pending home sales have dropped for 8 straight months. Locally, pending sales slipped for eight straight months from April-December 2013. That drop was from 2,829 to 1,506 contracts. However, while homes under contract have trended markedly higher during the first 3 months of 2014, they tipped down in April and May.
Looking back four years, the Tucson Realty Review June 2014 found pending sales have surpassed 3,000 only once at 3,319 in April 2012.
The first quarter 2014 data has been encouraging. The quarters increasing in pending sales implies that there is more housing demand. Additional housing demand suggests that the economic climate is stabilizing. That makes housing a key signal of consumer confidence as people buy homes more when they are a lot more positive regarding their future.
However, the recent reversal of that trend, may be signaling concerns in the buyer community. The last 2 months of homes under contract data may be signaling a slow down.
The Tucson Realty Review June 2014 – Don’t stress about distressed sales
While many fret that existing housing sales have recently slumped, the angst is misplaced. Since early last year, sales nationally have declined 7%, but distressed sales as a percentage of all sales have fallen from 25% to just 15%– more than the 7% drop in sales. Thus, the total of non-distressed sales is higher than a year ago. Relax.
• Source: Elliot Eisenberg, Ph.D. www.econ70.com
This months Tucson Realty Review June 2014 highlights popular communities in the Tucson area include Dell Webb At Dove Mountain, Los Saguaros at Dove Mountain and the Catalina Foothills. There are still great prices on luxury homes and Oro Valley properties.
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