Stabilization is Taking Place in the Housing Market

According to the National Association of Realtors, "Pending home sales are up, indicating a stabilization is taking place in the housing market. The Pending Home Sales Index, based on contracts signed in August, rose 4.3 percent to a level of 110.1 from a reading of 105.6 in July, but is 14.1 percent lower than August 2005. "

This index is one of the leading indicators for the housing sector and is based on the pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed, but the sale usually is finalized within one or two months of signing.

David Lereah, NAR’s chief economist, said the rise in the index is a hopeful sign. “Our sense is that home sales may have reached a low in August – the Pending Home Sales Index shows home sales should be fairly stable over the next two months, although a minor decline is possible,” he said. “With fewer new listings coming on the market, we should be able to draw down the inventory supply early next year to the point where home prices will rise, but at a slower pace than historic norms.”

For more information on listings in you area contact Nolting Real Estate at http://www.noltingrealestate.com/ and/or 636-391-9997.