Sellers market

May 28, 2015
Kent Hoover
Sellers are in the driver’s seat in the housing market since there are lots of buyers looking at a limited number of houses.

Sellers are in the driver’s seat in the housing market since there are lots of buyers鈥 more

Pending home sales hit their highest level in nine years in April, a sign that last month鈥檚 sales decline for existing homes may be only temporary.
The National Association of Realtors鈥 Pending Home Sales Index, which is based on contract signings, jumped to 112.4 in April, rising for the fourth consecutive month. That鈥檚 its highest level since May 2006. All four regions of the country saw more contract signings in April, led by the Northeast and Midwest.

鈥淩ealtors are saying foot traffic remains elevated this spring despite limited 鈥 and in some cases severe 鈥 inventory shortages in many metro areas,鈥 said NAR Chief Economist Lawrence Yun. 鈥淗omeowners looking to sell this spring appear to be in the driver鈥檚 seat, as there are more buyers competing for a limited number of homes available for sale.
鈥淎s a result, home prices are up and accelerating in many markets.鈥
There鈥檚 a limit, however, as to how high prices can go since mortgage interest rates are beginning to rise.
鈥淭he housing market can handle interest rates well above 4 percent as long as inventory improves to slow price growth and underwriting standards ease to normal levels so that qualified buyers 鈥 especially first-time buyers 鈥 are able to obtain a mortgage,鈥 Yun said.