The summer buying season is traditionally associated with increased customer activity across the nation and 2014’s season was expected to be no different. Orlando Realtors overall have spoken of more and more prospective buyers in Orlando making offers on listed properties since the beginning of the buying season. We now have records that reaffirm their claims.
A new industry report cites that the number of U.S. buyers signing contracts to purchase property increased in May 2014. The hike signals an increased likelihood of the housing market picking up soon, following the early months of sluggish business. Some Orlando real estate agents familiar with the rise, credit an additional distinction to the event – an increased number of signed contracts has been seen for the first time since June 2013!
Significant rise in the index of pending sales
The indicator of pending residential real estate sales rose 3.4 percent in May 2014 with the seasonally adjusted value standing at 97.4 at the end of the month. The index of pending sales still remains 7.9 percent behind the corresponding value in the May of 2013. The 3.4 percent increase, however, does mark the first time, buying activity increased in close to nine months.
A gap of a month or two exists between the signing of a contract and the completion of sales. But the real estate industry considers pending sales to be a reliable indicator of future purchases. Further, with the economy improving and banks becoming more lenient in their mortgage-lending drills, more Americans are expected to sign contracts.
Sales of older homes, however, fell to their lowest levels since the July of 2012. In a period spanning eight months, sales of older homes fell seven times in a row. The numerical value of the dip was rather low. There exist some market specialists and real estate agents in Orlando however who hold that the sale of existing homes may have just reached the floor level.
US Housing market recovering from the relatively inactive winters
Economists and market watchers had previously made a forecast of weak sales and new housing constructs, largely due to the sluggish sales in the first two months of 2014. The nine-month increase in the number of pending sales comes as a heartening sign – not only for realtors but also for home buyers and sellers.
The May increase does reflect a partial recovery from the sluggish winters at the least. All over the U.S., sub-zero temperatures, snowstorms, and uninviting weather, in general, kept potential buyers from exploring new properties. The first two months of 2014 too, as a result, experienced very little or no activity from prospects. Further, for most of the second half of 2013, prices of houses went high due to a finite availability of homes.
The summer buying season is, however, marked by an increase in inventory and increased buyer activity. A good time to make an offer, realtors say.
