According to National Association of Realtors, NAR, month of May witnessed an increase in number of pending sales by 8.2% against April, which was 13.4% higher than the same period in 2010.
Following the series of our previously published articles in market condition at this time we will examine the recent “Pending Sale” stats, which bear another good sign of positive momentum that real estate market is enjoying these days. As we have discussed previously one of the biggest hurdles in the way to a healthy market has been number of foreclosed properties that needs to be taken out in order to reach any normalcy. The pending sales represent the number of homes that are under contract and have not closed yet. .
The upward trend in pending sales since June of 2010 makes us believe on that date as when the market hit the rock bottom; hence the sales could only increase from then on. The increase in contracts and sales of homes are great signs that with the help of a healthy absorption rate, we could finally see the lights at the end of the foreclosure-era tunnel. This market needs to get the under-priced foreclosed properties out before we could see any sign of new construction. With the recent increase in number of permits for new homes, all standing in front of a recovery are the lenders who are still sitting on thousands of delinquent and foreclosed files. The fiasco of last year’s mishandling of these files has caused a delay in foreclosure process as well as the submission of delinquency notices to homeowners. If banks finally move and get the remaining foreclosure properties into the market and finance the new home buyers to pick these properties up, they will be helping to rebuild a real estate market that they have so mercilessly destroyed.
