Orlando pending sales indicate a demand for foreclosures
Wednesday, March 4, 2015
Pending sales in U.S.: up 8.4 percent
Pending sales in Orlando: up 13.69 percent
Improved buyer demand at the beginning of 2015 pushed the nation's pending home sales in January to their highest level since August 2013, according to the National Association of REALTORS®.
The Pending Home Sales Index climbed 1.7 percent to 104.2 in January from an upwardly revised 102.5 in December and is now 8.4 percent above January 2014 (96.1). This marks the fifth consecutive month of year-over-year gains with each month accelerating the previous month's gain.
In Orlando, pending sales for the month of January are 13.69 percent higher than in December 2014, but 6.55 percent lower than in January 2014.
Orlando's biggest January-to-January comparison shift in pendings occurred amongst foreclosures, which are up 56.27 percent. Short sales, on the other hand, are down 47.79 percent. Normal sales increased 20.09 percent.
Orlando housing market stats for January 2015
Lawrence Yun, NAR chief economist, says for the most part buyers in January were able to overcome tight supply to sign contracts at a pace that highlights the underlying demand that exists in today's market. “Contract activity is convincingly up compared to a year ago despite comparable inventory levels,” he said. “The difference this year is the positive factors supporting stronger sales, such as slightly improving credit conditions, more jobs and slower price growth.”
Yun also points to more favorable conditions for traditional buyers entering the market. All-cash sales and sales to investors are both down from a year ago, creating less competition and some relief for buyers who still face the challenge of limited homes available for sale.
“All indications point to modest sales gains as we head into the spring buying season,” says Yun. “However, the pace will greatly depend on how much upward pressure the impact of low inventory will have on home prices. Appreciation anywhere near double-digits isn't healthy or sustainable in the current economic environment.”
The PHSI in the Northeast inched 0.1 percent to 84.9 in January, and is now 6.9 percent above a year ago. In the Midwest the index decreased 0.7 percent to 99.3 in January, but is 4.2 percent above January 2014.
Pending home sales experienced the largest increase in the South, up 3.2 percent to an index of 121.9 in January (highest since April 2010) and are 9.7 percent above last January. The index in the West rose 2.2 percent in January to 96.4 and is 11.4 percent above a year ago.