Despite markedly higher interest rates and problematic new appraisal guidelines, homebuyers are still stepping back into the market.

The National Association of Realtors said yesterday that pending home sales, which measure new purchase contracts signed, rose in May for the fourth consecutive month. According to Bloomberg, the 0.1% gain from the prior month barely edged out expectations that the gauge would remain unchanged.

Bottom calling is once again en vogue, as an analyst from BMO Capital Markets in Toronto said

“We’re starting to see sales stabilizing. We’ve probably reached bottom or are close to that.”

As discussed in this month’s Cirios Trends, this incessant bottom calling is a farce. To say that “the housing market” has bottomed is a meaningless statement, since local markets often move independently of the broader trend. Anyone calling a bottom in the broad market is likely trying to sell you something, or trying to get their name in the paper.

Only careful analysis of local trends, sales patterns and inventory level can provide insight into the near term direction of home prices. Looking for this very thing for your market? Contact Cirios today!

Tags: bottom, Cirios Trends, NAR, pending home sales

This entry was posted on Thursday, July 2nd, 2009 at 2:19 pm and is filed under Housing Perspective. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.