Real Estate Market Update: Pending Home Sales and Home Prices

by on Real Estate Investing

A Home for Sale Sign in Front of a House

The best thing about the current real estate market is that mortgage rates and home prices are still low (in comparison to prices before the real estate market crash). At the same time, real estate experts predict that home prices will continue to rise and mortgage rates will remain low for a while. Therefore, homebuyers and investors with an interest in real estate can take advantage of the current real estate market, being assured that home prices will continue to rise throughout the foreseeable future.

The current real estate market is not only marked with affordable homes and low mortgage rates, but the number of bank-owned homes on the market is declining while pending home sales, new home construction, and home prices are rising.

Rise in Home Prices and Pending Home Sales

Not only are home prices rising, but they are increasing at a rate that has not been witnessed since 2006 – before the real estate market crash. Home prices rose 10.2% from March 2012 to March 2013, which is a significant gain. The declining number of distressed properties (foreclosures, short sales, etc.) on the market is definitely contributing to the percentage of increase. At the same time, the national real estate market is making progress toward recovery – therefore, even when distressed properties level out home prices will continue a steady increase (although maybe not at the current rate).

Along with rising home prices, pending home sales are also increasing. A recent report by the National Association of Realtors indicates that pending home sales is up 0.3% from March to April of this year and up 10.3% from April 2012 to April 2013. This is the highest annual percentage of increase in the last three years.

All of this information taken together tells us a few things. First, the real estate market is making progress. Second, home prices, home sales, and pending home sales are all rising. Third, now is a great time to buy real estate – especially if you are looking to buy distressed properties while they are still readily available. The best way to find foreclosures and other distressed properties in the current real estate market is to turn to online foreclosure listings.

In conclusion, the real estate market is making progress toward recovery and the low home prices of the last few years and high foreclosure inventory is quickly declining. If you are looking to invest in real estate, start your search today to take advantage of depressed home prices and low mortgage rates.