Housing made headline news again this week, as existing home sales and pending home sales data was released by trade organization, NAR.
I’m Kathy Fettke and this is Real Estate News for Investors.
The National Association of Realtors published it’s findings this week for pending home sales in February, which basically counts the number of contracts signed.
Obviously not all signed contracts will end up closing, but pending home sales data does tend to be a good indicator of future closings and where the real estate market is headed.
According to NAR’s February's pending home sales data, all regions showed gains except for the Northeast, which saw a slight 0.2% drop. Pending home sales in the South only increased 2.1% and just 0.7% in the West. However, pending home sales in the Midwest surged 11.4%.
NAR’s Chief Economist, Lawrence Yun, attributes the increases to a drop in interest rates early this year. Mortgage rates dipped to the lowest level in a year, in reaction to the sharp stock market declines in January.
This might explain the buying surge in the Midwest, but why did pending home sales in the Northeast drop .2%?
Get the full transcript at www.NewsForInvestors.com
The three most important factors when investing in real estate are NOT location, location, location, as you’ve probably been told in the past.
Instead, the three most important factors are: job growth, population growth and affordability.
If you're looking for a solid investment that provides cash flow today and the potential for appreciation in the future, choose affordable markets with job growth.
Too many people still look at past appreciation rates to determine where and what they will buy. This is why so many people jump in to markets at the last hour - AFTER the smart money has already left. The smart money buys low and sells high.
In contrast, the masses jump in and buy high, hoping for even more appreciation - but too often, soon realize they already missed it. And instead, they were just suckers who paid the smart money at the peak and got stuck with the hot potato.
If you’d like a list of cities that are still great buying opportunities that are at the beginning of their growth phases, join the Real Wealth Network. It's free! You'll get access to all the data available and have the chance to meet with one of our experienced investment counselors.
Join at www.NewsForInvestors.com
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