Short Sale, Foreclosure and Strategic Default

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Friday, November 14, 2008

Homesales decline on economic slowdown

Our office had at least 2 approved short sales in San Diego cancel last month as the buyers did not want to close.  Many people got scared as the Dow was collapsing. 

This stat just confirms what we saw. 

Pending Home Sales Down on Tight Credit and Economic Slowdown
Pending home sales fell on the heels of a strong gain a month earlier as credit tightened and economic conditions deteriorated, according to the National Association of Realtors®.

The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in September, declined 4.6 percent to 89.2 from an upwardly revised reading of 93.5 in August, but is 1.6 percent higher than September 2007 when it stood at 87.8.

Lawrence Yun, NAR chief economist, said pending sales have been above year-ago levels for two months in a row. “The month-to-month weakening in pending home sales is understandable, but because the index remains above year-ago levels it means we’re still in a broad period of stabilization,” he said. “Conditions remain mixed around the country, but markets that are showing annual sales gains include Long Island, N.Y.; Boston; Minneapolis; Denver and Washington, D.C., in addition to consistent solid gains in California and Florida.” ²

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