2012 Home Sales: Positives on Many Fronts

NAR released its latest pending home sales index figure last week and for the second month in a row the index is up. But more than that, the index has broken 100. This is significant because the only time since the housing boom collapsed that the index has broken 100 is when the home owner tax credit was in effect. The fact that the index has returned to that level a year since the credit has been in effect means the housing market is strengthening completely on its own, without any stimulus.

NAR Chief Economist Lawrence Yun is upbeat about 2012 because in a number of areas indicators are pointing upward. Not only are home sales up but housing starts are up and home prices are stabilizing in many markets and heading up in some. In areas where they’re still down, the declines aren’t that great. More fundamentally, broader U.S. economic signs are looking positive, including the all-important jobs picture. About 100,000 job are being created a month, and that could rise to 150,000—still not a quick enough pace to get us back to where we were before the downturn but the headwinds are in the right direction.

In the video, Yun talks about what the latest figures mean.

Robert Freedman

Robert Freedman is director of multimedia communications for the NATIONAL ASSOCIATION OF REALTORS®. He can be reached at rfreedman@realtors.org.

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  1. In Vancouver WA pending home sales saw a spike mid-year as the RMLS reminded short sale listing agents to mark their properties as pending if an offer was accepted and only that offer would be sent to the bank. This caused a several-hundred home surge in pending sales as 80% of the listing agents complied. Now the
    homes for sale Vancouver WA
    Resale inventory level is at 4.8 months.

  2. I love reading the information provided in your articles. After nearly 25 years in the real estate business I have seen many changes from market trending highs and lows, to high interest rates, and terrible loan practice’s across the board.. Everyone is making less then they wanted including the real estate professionals paying higher advertising cost and MLS fees every year, gas prices, they are right in the throw of it with all the struggling population. Many agents at times are being asked to reduce their fees to put a deal together. We already got less, because sellers are getting less……It is not your agents fault, it really is not. I feel there are two “main” real reasons that real estate is now moving again:
    My take on the market today:
    #1.Sellers after 3-5 years, are coming to terms with the fact that they are not going to get the price they once could have during the boom……. for their properties. (they missed that boat). Many buyers continued to look and get a feel for the markets they were interested in…which in the long run really helped them make a intelligent pricing/offer decision when they found what they were looking for.
    #2. Interest rates are at all time lows and many buyers that were on the picket fence, has decided that owning a home is the American way and NOW is a great time to jump in.
    I know real estate will recover…this was a “man made crisis” and they take a little longer to recover. Hang in there, owning a home is the best thing you can do for a family and your future. The other way is throwing money away. You all need a place to live so why not own it. Best to all the read this and have a wonderful day!

  3. This article marked the start of another housing boom in Bend Real Estate that has continued to this day! However, there are some indications the market is softening.