After 29 months of increased home sales nationwide, pending home sales have declined. Higher mortgage rates and higher home prices seem to have curbed buying power.
The government partial shutdown also impacted the housing recovery. Because the IRS and Social Security Administration were closed, lenders could not obtain critical inform verifications needed for loan approvals. Lawrence Yun, National Association of Realtors’ Chief Economist, reports, “Declining housing affordability conditions are likely responsible for the bulk of reduced contract activity. In addition, government and contract workers were on the sidelines with growing insecurity over the lawmakers’ inability to agree on a budget.”
Still, the total existing-home sales for 2013 will be 10% higher than in 2012. Right now, we are looking at a flat trend heading into 2014. There are some good buys on the market and since the trend is for growth in the spring months, now may be the right time to relocate. Sellers are motivated and well-priced homes are in demand.
November is a time for me to reflect and give thanks. I am thankful for our friendship and wish you all the best. Happy Thanksgiving!