Chicago, IL (PRWEB) May 29, 2014
On Thursday, May 29rd, the National Association of Realtors (NAR) released their pending home sale s index for April. The value of the index rose less than expected in April which disappointed some housing market watchers but not Peoples Home Equity.
The NAR reported that pending home sales grew 0.4% in April. The index value was 97.4 in March and rose to 97.8 in April. The index reached its trough in February at a value of 94.2. NAR Chief Economist Lawrence Yun commented on how he thought declining home sales numbers had shown a bottom before rising on cyclical demand. Regionally, the Midwest, where Peoples Home Equity centers much of its lending business, saw the highest month over month sales growth at 5%. The northeast was in second seeing a 0.6% rise since March. Unfortunately, the south experienced a -0.6% decline and the west saw a -2.9% decline. All regions remain below year ago levels: Midwest at -6.9%, Northeast at -12%, South at -6.4%, and the west at -15%. The quickly monthly rise in Midwest home sales supports claims made over the weather as to why individuals were not purchasing homes during the winter. Now that the weather as warmed, Chicago has a seen a resurgence of prospective home buyers. Another interesting observation was the -15% decline in year over year sales in the west. The California market, especially San Francisco has been ridden with ever rising prices. Perhaps the lack of transactions has fueled the relatively exacerbated prices of the west. However, one must remember that markets such as Las Vegas and Phoenix are strict on credit and many individuals are stuck in the slow foreclosure process slowing the housing activity in the region as cash buyers slowly dry up.
This increase was below what analyst’s expectations, however Peoples Home Equity was not disappointed. The lender is of the opinion that subsequent pending home sales reports will be ever greater in index value. The lenders opinion stems from a relatively leading indicator, which is the “National Home Sales Snapshot” from DQnews.com. Peoples Home Equity has referred to this home sale snapshot before on May 24th in a release titled “Home Sales Continue Rise For 8th Consecutive Week.” The fact is home sales have risen relentlessly since April and they continue to do so as May 29rds announcement showed that home sales increased for another week by 2.1%. Now is looking like a good time to purchase a home since mortgage rates have fall to near 2014 lows. Expectations were that rates would increase throughout the year, but prospective mortgage applicants are being given a break. One should take advantage of this time now to at least get approved for a home loan.
If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: 262-563-4026