Pending Home Resales in U.S. Unexpectedly Rise 6.3% as Prices, Rates Fall

[Purveyor]

Source: Bloomberg

Feb. 3 (Bloomberg) -- More Americans signed contracts to buy previously owned homes in December for the first time in four months, signaling slumping prices may be boosting demand.

The index of pending home resales climbed 6.3 percent to 87.7, the first increase since August, from a revised 82.5 in November, the National Association of Realtors said in a report today in Washington. Pending sales rose in two of four regions.

Record foreclosures are pushing down home values, making homes more affordable for those buyers able to get financing. Still, restrictive lending rules and further price declines are likely to scare away the majority of purchasers, indicating the real-estate recession will persist for a fourth year in 2009.

“Lower prices probably have attracted some buyers,” said David Sloan, a senior economist at 4Cast Inc. in New York, who projected an increase. Still, “the rise may be difficult to sustain.”

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aiy2is1cJwJY&refer=home

[snooper2]

1. My buddy at work and his new wife and child just closed...

First house- They are in late 20's...

Paid about $110,000 and got a 4.6% interest rate with half shitty credit...


Time to buy is now!

[Still Sensible]

3. Good for them

kind of surprised they could get a loan. I'm hearing of so many with "good" credit that are unable to get financing right now.

[snooper2]

4. They are in low 600's 615-635

I got them listening to TexasLending.com broadcast on AM 570 on Saturday's about a year ago and Dave Ramsey's show.

Really good information on what lenders look at specifically on your credit- etc., etc.,

They fixed the right things :)


It's all about being educated.

[Still Sensible]

2. Generally speaking this is not as good as it sounds

I think it is predictable that now the housing market has collapsed in many places, people with means will start buying up bargains. Just a fact of life.

This doesn't mean anything to those that have already lost their homes or the many that are currently at risk facing foreclosure or simply hanging on by the skin of their teeth.

The republicans will probably try to spin this as such a market positive that we should reexamine some proposals that are currently being discussed. That would be a big mistake, because this news is meaningless in the grand scheme of things.