November 2009 marks the eighth straight month that pending home sales have risen in the United States, the longest consecutive increase since 2001 as well as a positive sign for economic recovery. The Pending Home Sales Index shows an increase of 21.2% since September of 2008, the largest annual increase ever to be recorded; the index has risen 6.1% just in the last month alone.

The upswing is caused in part by the rush of first-time home buyers who are looking to cash in tax credits before their expiration, and indicates the arrival of a level of stabilization for many middle-class families and their finances. The increase also shows that we are indeed in the first small steps to a durable economic recovery and is testament to the tax credit’s efficacy in reviving the home market. Despite the surplus of houses available on the market, in particular new homes, the signs look good for things to level out for both buyers and sellers. The San Diego market is no different. As of 11/30/2009, their are  more then 10,000 homes for sale, but with approximately 23,000 properties sold (YTD), things are not as bad as we think they are.

The National Association of Realtors now estimates that three million people who rent are now financially qualified to purchase a home; while most may not go out to an open house tomorrow with down payment in hand, the ability is there. Where there is ability, there is possibility and as long as Americans dream about owning their own home, recovery is immanent. The path to stability in the real estate industry and specially in the San Diego area, will be slow and tedious, but with positive financial indicators leading the way, the light at the end of the tunnel is getting brighter every day.

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This is filed under National Markets.

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