Sales Contracts Peak High in Recent Months: What This Means
In recent months, contracts for home sales peaked as potential home buyers rushed to take advantage of low mortgage rates. The PHSI indicator, pending home sales index, rose 3.5% in February from the previous month according to National Association of Realtors. February also marked the highest level for pending home sales for seven months straight.
So, what’s the good news for buyers? Well, February is usually a turning point when new home inventory goes on the market. As more sellers list their homes, buyers will have a greater selection over the next month or two. Currently, the 30-year fixed mortgage rates have been holding fairly steady for the first half of the year. However, that may change during the second half of 2016 as the Federal Reserve reviews interest rates. So, in order for buyers to take advantage of these near historic low rates, the best time to make a purchase is now. As more homes get sold, prices may climb as inventory starts to deplete.
For sellers, this too is also good news. Buyers are looking to make a purchase now, and they need your inventory. Since rates are steady, more potential home buyers are looking to make that move—and so should you. Currently, the demand for homes is outpacing the inventory. This means that you will get the best price from your current home. Plus, you too will want to take advantage of the lower interest rates. If you are wondering about what your home may be worth, contact a licensed real estate professional. He or she will be able to walk you through a complete market analysis for your neighborhood and determine a value for your home.
So, regardless if you want to buy a home or sell one, right now looks like the perfect time to get your best deal.