A report released yesterday stated that the number of homes that went pending in April this year were higher than anyone expected.
The Pending Home Sales Index from the National Association of Realtors (NAR) rose to 88.2 in April, up 6.3% from March's reading of 83 and the highest level since October. This is good news since economists had thought there would be a small decrease in sales. This is still down from last year but obviously we are in a whole other situation this year.
This has caused NAR to revised its existing home price outlook for 2008. They are still predicting falling prices but not quite as far. The same goes for the number of sales, where they had predicted a 4.7% decline, they are now saying it will be more like a 4.5% dip. Of course this is only one month and there are different opinions everywhere you look, but it is a tiny ray of hope.
The positive report may mean that the price decline could be starting to slow. There is a chance that we are at, or approaching the bottom.
I believe this positive April number comes from bargain hunters who want to take advantage of the situation. This is a great idea because prices are so low and mortgages so affordable, not to mention that sold homes improves the economy so everyone wins.
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