Wednesday, October 8, 2008

Home sales activity picking up

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.

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