Over a year ago, in February 2013, more people were signing contracts to buy homes.
Thanks to many factors – from rising prices to the Northeastern polar vortex – the National Association of Realtors® Pending Home Sales report indicates that February 2014 was 10% below a year ago, and was as slow as October 2011 as far as signed contracts.
This report from the NAR is so important because it shows how many homes will officially sell in the next 60 to 90 days. The vast majority of homes with signed purchase contracts sell within this amount of time.
Demand for Home Remains Strong
While sales activity was slow, prices are still rising.
Rising home prices may indicate that there is still a robust interest in home buying, but not very many good homes to buy. The few homes on the market that people actually want to buy are subject to bidding wars.
So, if there were more homes on the market, the NAR’s Pending Home sales report might have shown much stronger numbers for February 2014.
The post-collapse housing boom that we’ve seen since 2012 seems to be alive and strong – although the numbers sometimes don’t show an accurate picture of buyer sentiment. Given the opportunity, many more home buyers would have signed a contract to buy a home in February.
Great Opportunity for Buyers
Anyone who has considered buying a home in the next few months could be looking at a golden opportunity. Those who buy now will avoid the summer buying frenzy that is just around the corner. Stiffer competition for quality homes could be coming. And with sales numbers down, real estate agents and mortgage lenders are offering great deals.
Unique “fixer-upper” loans like FHA 203k and HomePath Renovation make it possible to purchase and repair homes that need cosmetic fixes. Buyers who want to avoid bidding wars and pay less can capitalize on lower demand for homes that need some TLC.
Get pre-qualified here so you can make an offer on the right house when you see it. A pre-approval in hand gives homebuyers a leg up on the competition when shopping for a home.