Joe Moshe, Broker/Owner, Charles Rutenberg Realty, says the rise in the pending home sales index during the month of March could be attributed to homebuyers expressing confidence in the economy as more companies start putting people back to work while housing prices are on a downward trend. The downtrend will still continue as the tremendous "shadow inventory" of houses have yet to be released by the banks.
The National Association of REALTORS reported that the PHSI during the month of March rose 5.1% to 94.1 from 89.5 in February. This marks the second month in a row that the PHSI has gone up, reaching its highest level since November 2010. These figures do not reflect the number of closings.
This follows a trend of good news where, during the same month, new and existing home sales were also up. "When people saw the economy starting to rebound, that is when they decided to make the move to enter into a contract to purchase a house," Mr. Moshe said. "Companies started to hire more workers, so when these people re-entered the workforce, they were able to bring home an income to make such big-ticket purchases."
Despite this flurry of activity, housing prices continue to fall. While this helps make homes more affordable, others say a continuance in falling prices may hurt the Real Estate market and bring it into a double-dip recession.
"It is too soon to tell when the bottom will be reached," Mr. Moshe said. "Hopefully, this will provide more incentive for prospective homeowners who have been waiting on the sidelines to finally buy a house. As more homes are being sold, there will be a decrease in inventory and home prices will be pushed up, precluding the uncertain 'shadow inventory,' which remains a mystery."
Charles Rutenberg Realty is one of the nation's fastest-growing Agencies with more than 1,300 Agents on Long Island, Queens, Westchester, and the New York metro area. For more information, call (516) 575-7500, or visit www.crrli.com.
About Charles Rutenberg Realty
Founded in 2006, Charles Rutenberg Realty of New York is one of the nation's fastest-growing, most progressive Real Estate Agencies with over 1,300 Agents on Long Island, Queens and Westchester. Charles Rutenberg Realty specializes in residential properties in Nassau, Suffolk, Queens, Kings and Westchester Counties. Among the 1,900 independent Real Estate offices represented by Multiple Listing Services (MLS), Charles Rutenberg Realty has the highest market share for available inventory, listings taken for the first six months of the year and listings under contract. Its Agents are trained in the latest creative marketing programs and can fulfill all their clients' financial and personal needs when buying or selling a home. Charles Rutenberg Realty is headquartered in Plainview, New York, with offices in New York City, Florida and Illinois. For more information, call (516) 575-7500 or visit www.crrli.com.