Home Sale Contracts Increased In August

Which is a 7-month rally.  The article below attributes it to the tax credit expiration but I only agree with that a little.  The main reason in my opinion is that prices are so low, the most affordable in a long time, and interest rates are so low.  Don’t let the talks of the tax credit ending on November 30th rush you into buying a home.  Yes, $8,000 is a lot of money and it’s free but you will be in this home for 5 years or so don’t let the credit rush you into buying something you will later regret.

Also keep in mind that a lot of the contracts never close due to many reasons and in my opinion a big one is an inexperienced mortgage person.  There are so many people that are trying to buy a house that shouldn’t be.  Some of those buyers will close but a lot won’t. 

“The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules,” he said.”

http://money.cnn.com/2009/10/01/real_estate/August_sales_contracts/index.htm?section=money_realestate