Pending home sales are a leading indicator of activity in our local housing market. In tonight's Economy Rockford report.. we take a look at what the local numbers mean as far as a turnaround.
23 News Real Estate expert Jon Krause says when pending home sales rise.. it's generally a sign of market strength. A pending sale is when a contract is signed.. but the deal hasn't yet closed.
Demand for homes has increased recently because of low interest rates and lower prices. Krause says the gain in pending home sales is good... But the market won't recover until our job market improves.
"What we're seeing right now is the pending are pretty close to the amount of pendings we had last year. at this point in July we had a little over 500 pending transactions this year we have alittle over 500. I figure usually in the neighborhood of 90 percent of whatever is pending will show up as sold and closed within the next 30 to 60 days. That's a good sign of what sales should look like in the next 30 to 60 days."
The average price of a home for sale in our area is 140-thousand dollars.Homes are sitting on the market more than 3 months.. on average.. before they're sold. Krause says before the recession the average was about two months.