Market Forecast: Case-Shiller Home Price Index, New Home Sales, Pending Home Sales
There was not much movement from mortgage rates last week, markets were closed on Thursday in observance of Thanksgiving and some markets were closed or closed early the following Friday. This week closes out November with several important housing reports including the S&P CoreLogic Case-Shiller home price index, new home sales, and the pending home sales index.
The Case-Shiller home price index is based on the changes in value of homes involved in two or more sales transactions across twenty major metropolitan areas throughout the country. In September, the 20-city index appreciated 0.1% month-over-month and 5.5% year-over-year. David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, commented, “price gains are beginning to moderate.”
New home sales, or the sales of newly constructed homes, account for about 10% of real estate transactions compared to the 90% of real estate transactions that are resales. New home sales declined in September, down 5.5% month-over-month to a seasonally adjusted annual rate of 553,000. The figure is down 13.2% from the previous year. All regions declined, except the Midwest, up 6.9%.
The pending home sales index tracks the number of homes that are under contract but not yet closed. Typically, it takes four to six weeks for a contract to close. Pending home sales are used to predict future real estate activity. In September, pending home sales improved, up 0.5% to a reading of 104.6. Gains were driven by the West and Midwest. The Northeast and South each declined.
Heading into the end of the year, housing activity tends to slow down, meaning it could be the perfect time to make your real estate moves. With less buyers on the market, sellers may be more willing to negotiate or even offer seller concessions. If you are interested in buying a home before the end of the year, get preapproved for mortgage financing to ensure a speedy transaction.
Sources: CNBC, CNBC, Econoday, MarketWatch, MarketWatch, Mortgage News Daily