Is the West leading the way back? Latest report of the Pending Home Sales Index, a forward-looking indicator based on contracts signed in January, fell 7.7 percent to 80.4 from a downwardly revised reading of 87.1 in December, according to National Association of Realtors latest report. Every area is down except the WEST which is rising! As a realtor working in Orange County I can definitely see the surge which started right after Super Bowl Sunday!
Breakdown By Region
Here’s how the PHSI fared across the country:
· Northeast: dropped 12.7 percent to 57.8 in January and is 19.7 percent below a year ago.
· Midwest: declined 9.2 percent to 72.6 and is 13.8 percent below January 2008.
· South: fell 11.9 percent to 82.2 in January and is 9.1 percent below a year ago.
· West: rose 2.4 percent to 103.6 and is 13.5 percent higher than January 2008.
In conclusion if the West is leading the way we can certainly hope to see a turn around by spring or summer and it has obviously started here. History has shown that sales can go up even in times of high unemployment if affordability increases. Couple the increased sales with decreasing inventory and it time could be running out for the fence sitters. No one has a crystal ball but anyone who has studied OC real estate knows this area does not conform to the rest of the state or the rest of the country. If you have thinking about purchasing a home in Orange County it might be time to start getting serious. Call Mary at 949-275-6544 if you need any help or would like to discuss the current market conditions.