The number of sales contracts for pre foreclosure homes in Des Moines and other existing residential properties for sale in the United States has risen in the month of February 2010, according to the National Association of Realtors’ (NAR) Pending Homes Sales Index which was released on the first week of April 2010.
According to the Index, February recorded an increase of over eight percent at 97.6 compared with the previous month’s 90.2. CNNMoney.com has reported that the increase in signed contracts for residential properties for sale was a surprise to most economists who predicted a mere one percent increase for the month of February.
The Index measured signed contracts for coops, single family homes and condos. These contracts are considered forward or future looking indicators since most of them will not be completed until many months have passed. Contracts of completed sales were not included in the Index.
The unexpected increase in the number of sales contracts for foreclosures in Des Moines and the rest of the major cities of the U.S. is explained by market analysts as partly due to the tax credit provided to home buyers.
Buyers of Des Moines pre foreclosure homes and other foreclosed properties nationwide are trying to beat the April 2010 deadline for the tax credit that could provide first time house purchasers with as much as $8,000 of credit.
The February 2010 statistics on contracts for residential properties for sale are also 17 percent higher than the 83.2 Index recorded a year ago in February 2009. The unexpected numbers are believed to be a sign of a home sales surge for the rest of the year. NAR economists have stated that the country needs the expected sales surge to stabilize the housing market and lower inventory numbers.
Meanwhile, the Case-Shiller Home Price Index of several cities shows that prices of homes in the U.S. have been declining for the past four months. This is after the market recorded a five-month price run up that started in the spring.
Des Moines pre foreclosures homes and foreclosed properties all around the U.S. have enjoyed increased attention from buyers in the month of February. The figures are being seen as a sign that more foreclosures will be sold in the coming months.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.