Monday, June 9, 2008

Pending Home Sales

It was reported today (June 9) by The National Association of Realtors that “pending home sales” for April of previously owned U.S. homes were up a surprising 6.3%- vs. an expected decline of ~1.0%.

It should be noted that this data is for April not May and is not as much of a leading indicator as it could be if the data reported was more current. The “sales pending” number of 33 for Longmeadow that I reported in my previous post was as of June 5- not April 30.

There are a couple of interesting points from the reports that I read earlier today…

“Bargain hunters have entered the market en masse, especially in areas that have experienced double digit price declines, but it’s unclear if they are investors or owner-occupants.” – Lawrence Yun, National Association of Realtors

Data from a recent blog post, showed that over the past seven months Longmeadow’s median sales price has dropped from ~ $350,000 to ~ $296,000- a 16% drop.

Many observers have predicted that we will be at the bottom of the housing crisis when home prices stabilize.Again, in a recent blog post the median sales price for Longmeadow seems to have stabilized at ~ $295,000 – $300,000 for the past three months.

Perhaps, we are at the beginning of the recovery for home sales in Longmeadow….. stay tuned.