Home purchase contracts up nationwide

Posted on 04/26/12 No Comments

Contracts for home sales up nationwide

The predictions for the 2012 real estate market, for both residential and commercial, called for moderate growth. Almost five months into the year, those prognostications are on track.

The National Association of Realtors, of which we are members, reported this week that across the country its “index of sales agreements”┬áhas increased 4.1 percent for March, the highest rate of growth for this metric since 2010, when a national tax incentive was in place for home buyers. The index is just over 100, which indicates a “healthy” market.

Clearly, low prices and record-low 30-year mortgage rates are continuing to stimulate the market. As we’ve stated numerous times on the blog though, foreclosures and short sales will continue to hold prices where they now stand for quite a while. But that’s actually a good thing. We need the market to move however it can. And remember, real estate is historically cyclical, it will always go up and down. While this latest downfall has been more dramatic and complicated than more natural market corrections, it’s still subject to the nature of supply and demand.

Please let us know if we can answer any questions for you about moving or the value of your home.

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