NAR reported yesterday that pending home sales were down by 16% in November over October. After steady increases, this may come as a bit of a shock to some consumers. To others, it may seem like the inevitable fall after so many months of gain.
But, what does it really mean? The Pending Home Sales Index is a forward-looking indicator of how the real estate market will be doing in the next couple of months. It measures how many sales contracts have been signed with the intent of closing, usually within the next 30 to 45 days.
Does this drop mean that the market is drying up? Just when recovery was on the horizon, are consumers baling out?
Hardly. A closer look at the numbers reveals that buyers are still very interested in getting that home. While the numbers dropped for November over October 2009, they are still 15.5% higher than November of 2008. And those of us lucky enough to live in the Western region (that's you, Colorado) aren't faring bad at all: the pending home sales dropped by a mere 2.7%, still 21.4% higher than November of 2008.
Want to know more about what's happening in YOUR neighborhood? Contact me today for a thorough look at the trends on your block.