In a July 28 National Association of Realtors press release, NAR chief economist Lawrence Yun spoke true words of wisdom when he said, “The best way to ensure a more solid recovery in housing is to simply return to normal, sound credit standards so more creditworthy home buyers can get a mortgage.”
Yun’s comment follows the announcement by NAR that, “Pending home sales increased in June following a wide swing down in April.” The Pending Home Sales Index, an indicator based on contract signings, rose to 90.0 % in June (from 88.8 % in May).
On average, it takes between one and two months for a property to close after it has received an offer. Yun suggests that, “The two consecutive months of rising activity should lead to overall improvement in closed sales in upcoming months.”
While for us in the Northeast the Pending Home Sales Index shows a 0.4 % dip down from May, it is actually 19.4 % higher than in June of 2010.
Existing-home sales, this year, are expected to rise slightly above 2010 totals, to reach 5.0 million. This is reassuring. When you consider the tribulations of market and regulations, home buyers and sellers alike might have good reason to feel insecure. However, it is clear that their determination and confidence remain a driving force, as revealed by the Pending Home Sales Index results.
This may also confirm that, increasingly, home buyers and sellers do not come to the market blindly. More have developed an action plan that is tailored to their true needs and means and that is founded on sound research and information.
After all, when it looks like the system (any system) appears to be failing us, it is only natural to turn to a creative approach. This requires an unwavering belief in possibilities. As a nation, we have long demonstrated that we do have that strength of character. This, also, is what inevitably leads to changes in “the system”, for it must eventually mold to our vision.
As individuals persistently make sound standards a part of their own personal goals and actions, they send a strong message in favor of better practices.
Click HERE to read the full NAR article.