The May 2009 Homes Under Contract numbers are in and we’re seeing a positive trend starting to take shape, though Florida and the rest of the South are remaining a bit flat.
Nationally – we’re at the fourth straight month in which home sales volume increased, corroborating the growing notion that housing is on the mend in most U.S. markets.
Real Estate News is a Regional Gig… National Numbers Often Mean Squat
Of course, as we know – national real estate data often means little – as home sales are a regional issue. As such, we see that in the southern part of the US, existing-home sales were unchanged at an annual pace of 1.74 million in May but are 8.9 percent below a year ago. The median price in the South was $157,400, down 9.9 percent from May 2008.
That said – static numbers are better than downward ones. So – we may yet see Florida homes on contract move up in months to come.
Consider these other housing-related stories from the past month:
- Existing Home Sales are rising
- New home supplies are falling
- The Case-Shiller Index is turning positive-like
Add these stories up, and it looks like the housing market is about to reach its bottom. (Though, we’re not there yet for sure.)
Nota Bene: Just because homes are going under contract to sell doesn’t mean that they actually will sell. As you know – and as I’ve seen first hand – even down to the closing table… a “deal” can fall apart for all sorts of reasons including failed home inspections, buyer-seller disputes, and mortgage-related problems. (But I NEVER have mortgage related problems of any sort… HVCC… Cough, Cough)
All in all, as the number of homes under contract increases, Existing Home Sales will rise as well – though it may not happen for up to 45-60 days into the future. And so long as buyers’ demand for homes remains strong, we would expect that home prices edge higher.
It’s too soon to say that housing has turned the corner for certain, but there’s an awful lot of data lately that suggests that we MAY be seeing the beginning of good things to come.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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