Pending home sales generally have been increasing nationwide with the occasional drop, the National Association of Realtors predicts that the pending home sales index numbers should remain in the stable range – that great range which everyone has been hoping for, theoretically bringing confidence back to the markets.
In October, The Pending Home Sales Index, slipped 0.7 percent to 88.9 from an upwardly revised reading of 89.5 in September, which is 1.0 percent below October 2007 when it was 89.8. Overall, of course showing leveling out.
This period of stability followed a spike in numbers in August when mortgage conditions were first eased for borrowers with changes to FHA guidelines and the bailout packages. The US Treasury Department’s reaction to the credit crunch has helped show investors that there is capital in the marketplace and that is just starting to be freed up. It is expected that Mortgage rates in 2009 will dip slightly to the mid 5′s and then increase slightly to around the low 6′s and stay there for some time.
Here in California, we recently reported that home activity was up a staggering 96% in September.
Lawrence Yun, the National Association of Realtors Chief Economist, expects growth in the U.S. gross domestic product (GDP) to contract through the first half of 2009, then stabilize and expand in latter part of the year – lifted by a home sales recovery. These estimates for existing home sales are as follows: Sales are forecast to total 4.96 million this year, and then increase to 5.19 million in 2009 and 5.55 million in 2010.
If you are interested in purchasing a property in Malibu, Pacific Palisades or the surrounding southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.
