Pending home sales is a great indicator for the strength and growth of real estate. “Pending” home sales are based on the number of escrows opened.
Escrows can be opened one of two ways:
- When a traditional sales contract is dually executed by both buyer and seller, or
- When a bank approves a short sale.
The index rose 5.1% nationwide in March (but is still 11.4% below March 2010)
The western region of the index (which includes San Diego) rose 3.1% (but is still 4.1% below last year – mainly due to the tax credit).
The hardline negotiators at Lyons Realty suggest that it is a good idea to create your own tax credit by requesting a credit from the seller in your offer.
Bill Lyons, founder and broker of Lyons Realty in La Jolla, CA said “Affordable prices, job creation and low mortgage rates have created very favorable climate for San Diego home buyers. The Pending Homes Sales Index is another indicator reflecting opportunities for today’s buyers”
Existing detached home sales in March for San Diego county were up 43% (but only .4% change from last year – mainly due to a seasonal jump coming out of the holidays).
It is important to note that Coronado and La Jolla were down 28% and 21% respectively while areas like Downtown and Mission Hills were up 29% and 37%.
Lawrence Yun, NAR’s chief economist, said “…existing-home sales should rise around 5 to 10 percent this year with sales growth of lower priced homes likely to outperform high-end homes. That means the price trend will reflect more homes sold in the lower price ranges”
All and all these stats are great news for San Diego home purchasers and we look forward to working with you toward the American dream!