Pending Home Sales on the Rise

There's good news on the nationwide real estate front.  The National Association of REALTORS® recently reported that November 2010 showed an increase in pending home sales.  This continues an upward trend in pending home sales over the last five months.  There were 3.5% more contracts signed during the month of November than October 2010, according to the Pending Home Sales Index (PHSI).  While this was still 5% lower than in November 2009, the broader trend over the last half of 2010 possibly indicates a slow recovery in the nation's real estate market.

Affordable home prices, low interest rates and improvements in the economy have helped buyers dip their toes in the local market, including first time home buyers, investors and retirees.  If mortgage rates remain low or even only rise slightly and the 2 million jobs that are expected to be added in 2011 do happen, there's a good chance that home sales will rise even higher. 

The Pending Home Sales Index varied in different parts of the country.  In the Northeast, there was a 1.8% increase.  In the Midwest, there was a 4.2% decrease.  The Southern region of the United States saw a 1.8% decrease as well.  However, the West saw an amazing 18.2% increase in pending home sales in November 2010 over October 2010 sales figures, which was also a slight increase over November 2009's PHSI.

As of today (January 3, 2011), the interest rates are as follows:

30-Year Fixed = 4.875%
30-Year Fixed FHA = 4.75%
15-Year Fixed = 4.25%
5-Year ARM = 3.375%
5-Year ARM FHA = 3.25%

Interest rates are expected to rise, with the 30-Year Fixed Rate projected to be around 5.3% by the end of the year.  Existing home sales are also expected to rise approximately 8% in 2011, with another 4% increase projected for 2012.  If you're interested in purchasing a Reno home, please contact me and I'll be happy to help.