Pending Home Sales Show Improvement

The most obvious way to predict future home sales would be to take a look at the list of homes that are under contract and waiting for closing. These are what we refer to as “Pending Home Sales” and we can track them on a daily basis in the MLS.

The real estate graph below shows the one-year trend of pending home sales, so the changes that we see are not due to any annual seasonality in any way (every point on the graph contains a full 365 days worth of information).

Pending Home Sales Graph

With the tax credit ending as a stimulant to new pending home sales, this report unfortunately is showing instant feedback. Beginning with the end of the Homebuyer Tax Credit, home sales have fallen and reached a new low on November 13, 2010.

Since November 13th, we have seen a steady rise, indicating that buyer activity might finally be growing again.

Future home closings have been on the decline and might reach a new market bottom in February or March. The graph below shows that we are not far away from seeing this happen with daily closed home sales.

Closed Home Sales In Tallahassee

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