NAR COMMENTS RE PENDING HOME SALES TRENDING UP

While inventories are falling, pendings have trended up in 7 of the last 11 months. 


Lawrence Yun, National Association of Realtors Chief Economist, said that the upward trending of home sale pendings bodes well for home prices. “Absorption of inventory is the key to price improvement, and this solid gain in contract signings implies that home values in many localities are or will soon be stabilizing as inventories get absorbed at a faster pace,” he said.  “Home sales still could be 15 to 20 percent higher,” Yun said.

“If banks would simply return to normal sound underwriting standards and begin lending to more creditworthy borrowers, we’d get a much faster recovery in the housing sector.”  Yun, as is the common thread, said that healthy job creation is necessary to ensure a solid recovery both in home sales and the overall economy.

A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. 

NAR reports that Foreign purchasers buy U.S. property for investment, vacation, and locational reasons.

• National Association of Realltor’s 2011 Profile of International Home Buying Activity reports that foreigners view U.S. properties as a secure investment, one that provides rental and long-term appreciation possibilities.
• Homes in this country are less expensive than comparable foreign properties.
• International purchasers buy properties for both vacation and rental purposes

FLORIDA CFO WANTS YOUR FEEDBACK ON IMPROVING THE FLORIDA HOME INSURANCE MARKET

Dear Friend,

With the 2011 hurricane season now underway, I am hopeful that we will continue the good fortune we have experienced for the past five years.

The past two legislative sessions have shown the delicate balance needed to attract the private insurance industry back to Florida while ensuring fair and equitable rates for Floridians. These legislative reforms should signal to the insurance industry that Florida is open, competitive and ready for their business.

Attached are two recent articles regarding the need for further discussion and reforms surrounding the Florida Hurricane Catastrophe Fund and Citizens Property Insurance Company. I found them to be thought-provoking and worthy of discussion.

I look forward to your feedback on these articles and any other insurance-related topics. It is an honor to serve as your Chief Financial Officer.

Sincerely,

Jeff Atwater
Florida's Chief Financial Officer

Jeff.Atwater@myfloridacfo.com 

 

Attachments:
Wall Street Journal Editorial on 5-21-2011
Guest Column by Don Brown in Tallahassee Democrat

ACTIVE LISTINGS DWINDLE WHILE PENDINGS ARE UP

    ACTIVE listings are properties 
   where no current sale contract 
   exists

   PENDING sales are properties in 
   which a contract for sale has 
   been executed but not yet closed.