Real Estate Information Archive

Pending home sales eased against a deteriorating economic backdrop but remain in a stable range, according to the National Association of Realtors^®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, slipped 0.7 percent to 88.9 from an upwardly revised reading of 89.5 in September, and is 1.0 percent below October 2007 when it was 89.8.

Lawrence Yun, NAR chief economist, said a review of the past year is instructive. “Despite the turmoil in the economy, the overall level of pending home sales has been remarkably stable over the past year, holding in a generally narrow range,” he said. “We did see a spike in August when mortgage conditions temporarily improved, which underscores two things – there is a pent-up demand, and access to safe, affordable mortgages will bring more buyers into the market.”

Let’s take a look at the sales statistics for November 2008 to see how the Western MA real estate market looks: 

  
This November, Worcester County saw a 16% decrease in sales, when compared against November 2007.  The average sales price declined 20% to $244,043, and homes were on the market an average of 12 days less than the same time last year.

In Hampden County, the average sales price dropped 11% to $182,195 in November 2008 from November 2007.  Home sales were down 36% in November 2008, while homes were on the market an average of 2 days longer than in November 2007. 

In Hampshire County, the average sales price dropped 5% to $281,124 in November 2008 from November 2007. Home sales decreased by 43% this November.  Market times increased by 23 days from November 2007. 

For the latest Western MA real estate market conditions in your area, please call me at 413-283-6324 or visit ShannonDonohueHomes.com.

The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in August, jumped 7.4 percent to 93.4 from an upwardly revised reading of 87.0 in July, and is 8.8 percent higher than August 2007 when it stood at 85.8. The index is at the highest level since June 2007 when it stood at 101.4.

Lawrence Yun, NAR chief economist, said home buyers were responding to improved affordability. “What we’re seeing is the momentum of people taking advantage of low home prices, with pending home sales up strongly in California, Nevada, Arizona, Florida, Rhode Island and the Washington, D.C., region,” he said. "It’s unclear how much contract activity may be impacted by the credit disruptions on Wall Street, but we’re hopeful most of the increase will translate into closed existing-home sales.”  National Association of Realtors®.

In Hampden County, sales were down 18% in September 2008, while homes were on the market an average of 13 days longer than in September 2007.  The average sales price dropped 8% to $198,889.

Hampshire County experienced a 14% decrease in sales this September.  Market times were the same as September 2007.  The average sales price dropped 9% to $250,181.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, fell 3.2 percent to 86.5 from an upwardly revised reading of 89.4 in June, which had risen 5.8 percent from May. The July index remains 6.8 percent below July 2007 when it stood at 92.8.

Lawrence Yun, NAR chief economist, said home sales continue to edge up and down. “Pending home sales are oscillating month-to-month, with the long-term trend essentially flat,” he said. “Overly stringent lending criteria imposed by Fannie Mae and Freddie Mac in the past month no doubt held back contract signings.”

Let’s take a look at the sales statistics for August 2008 to see how the Western MA real estate market looks:

 

  
This August, Worcester County saw a 14% decrease in sales, when compared against August 2007.  The average sales price declined 15% to $328,589, and homes were on the market an average of 9 days longer than the same time last year.

In Hampden County, sales were down 18% in August 2008, while homes were on the market an average of 19 days longer than in August 2007.  The average sales price dropped 12% to $202,979.

Hampshire County experienced a 16% decrease in sales this August.  Market times were only 5 days shorter than in August 2007.  The average sales price dropped 6% to $294,754.

Let’s take a look at the sales statistics for July 2008 to see how the Western MA real estate market looks: 

  
This July, Worcester County saw a 15% decrease in sales, when compared against July 2007.  The average sales price declined 15% to $285,378, and homes were on the market an average of 2 days longer than the same time last year.

In Hampden County, sales were down 14% in July 2008, while homes were on the market an average of 33 days longer than in July 2007.  The average sales price dropped 3% to $215,459.

Hampshire County experienced a more dramatic 23% decrease in sales this July.  Market times were, on average, one week shorter than in July 2007.  The average sales price dropped only 1% to $301,041.