The National Association of Realtors®, NAR, publishes a monthly Pending Home Sales Index that tracks contracts to purchase existing homes. The April index report is out, and it shows a solid uptick in sales contracts in March. Contracts signed in March jumped by 4.1percent to 101.4 for the index. This is the highest level since April of 2010.
This took many economists by surprise, as the expectation was for a much lower increase of around 1.0% in March. The index had fallen for a couple of months, and the question is whether this is just a seasonal anomaly or an indication of more to come. First quarter sales closings were the highest first quarter sales in five years. The rise in March contracts could point to a good second quarter as well. Signed contracts in March were up by 12.8 percent year over year.
Hard Hit Arizona Market Showing Signs of Rebound
One sentence in this week’s article at npr.org says: “Arizona is home to one of the nation’s extraordinary turnarounds.” Investors have been buying up inventory and driving up prices of homes under $250,000. The median home price in the Phoenix area market rose 20 percent over the past year, rising 6 percent in March alone. Tucson was recently named the nation’s best market for investors, however it looks like the easy money is ending.
Listing prices of foreclosures are rising, and multiple offer situations are surfacing again. According to one Realtor in the area, foreclosures that were listing for $20,000 to $30,000 are now being listed at double that, with almost a quarter of all home sales in Phoenix and Tucson made to investors. There are around 60% fewer foreclosures than last year in the Phoenix market.
These investors include rental property and flipping investors, with a current potential to profit in the short term due to rising prices. While Arizona was one of the worst markets in the country, it’s now turning in a very sharp move. Perhaps this is an indicator for other markets.
The National Association of Realtors®, NAR, publishes a monthly Pending Home Sales Index that tracks contracts to purchase existing homes. The April index report is out, and it shows a solid uptick in sales contracts in March. Contracts signed in March jumped by 4.1percent to 101.4 for the index. This is the highest level since April of 2010.
This took many economists by surprise, as the expectation was for a much lower increase of around 1.0% in March. The index had fallen for a couple of months, and the question is whether this is just a seasonal anomaly or an indication of more to come. First quarter sales closings were the highest first quarter sales in five years. The rise in March contracts could point to a good second quarter as well. Signed contracts in March were up by 12.8 percent year over year.
Hard Hit Arizona Market Showing Signs of Rebound
One sentence in this week’s article at npr.org says: “Arizona is home to one of the nation’s extraordinary turnarounds.” Investors have been buying up inventory and driving up prices of homes under $250,000. The median home price in the Phoenix area market rose 20 percent over the past year, rising 6 percent in March alone. Tucson was recently named the nation’s best market for investors, however it looks like the easy money is ending.
Listing prices of foreclosures are rising, and multiple offer situations are surfacing again. According to one Realtor in the area, foreclosures that were listing for $20,000 to $30,000 are now being listed at double that, with almost a quarter of all home sales in Phoenix and Tucson made to investors. There are around 60% fewer foreclosures than last year in the Phoenix market.
These investors include rental property and flipping investors, with a current potential to profit in the short term due to rising prices. While Arizona was one of the worst markets in the country, it’s now turning in a very sharp move. Perhaps this is an indicator for other markets.