Wednesday, October 8, 2008
Following up on my earlier mention of this. According to the N.A.R., the majority of pending home sales become existing (actual) home sales in a few months as escrow closes. As the chart shows, pending sales are an excellent predictor of actual (final) sales. The August data for pending sales suggests a meaningful uptick. This could mark the beginnings of a return to health for the housing market. Prices may still drift lower, but conditions are no longer in free-fall. In an earlier post I cited data showing significant improvements in California sales activity, as falling prices have brought buyers out of the woodwork. This is all good news.
Posted by Scott Grannis at 3:46 PM