This spring could potentially be the best season for home buyers, according to this Forbes article published earlier this week on March 27th, 2012. According to the article, “The spring home buying season looks bright because of an elevated level of contract offers so far this year,” Lawrence Yun, chief economist of NAR, said in a statement earlier this week. February home sales, despite a slight dip from January to February, remain well above 2011 numbers. The Pending Home Sales Index, which reflects signed contracts that have yet to close, from the National Association of Realtors(NAR) was 9.2% higher than February of 2011 and existing-homes sales, or closed contracts, were 8.8% higher than last year.
The five factors that will ultimately determine the spring housing market, according to the article, are:
- Weather – The mild weather has kept the market from slowing down, even in snowy places like the midwest
- Tight Lending – Tight lending has led many buyers to pay with cash.
- Foreclosure sales – Rise of foreclosure sales could affect the market this year.
- Location – Folks are looking at real estate on a much more local level, according to the author.
- Jobs – whether or not the job market improves