Asheville Pending Home Sales Slip in July

Asheville home sales declined in July but remain well above year-ago levels.

Pending home sales is an indicator based on contract signings, slipped 1.3 percent to 89.7 in July from 90.9 in June but is 14.4 percent above the 78.4 index in July 2010. The data reflects contracts but not actual closings.

The Asheville market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy We also need to know not all sales contracts are leading to closed existing-home sales. Other market frictions need to be addressed, such as assuring that proper comparables are used in appraisal valuations, and streamlining the short sales process.

 Looking at pending home sales in Asheville over a longer span will contract activity over the past three months is fairly comparable to the first three months of the year, and well above the low seen in April. The underlying factors for improving sales are developing, such as rising rents, record high affordability conditions and investors buying real estate as a future inflation hedge. It is now a question of lending standards and consumers having the necessary confidence to enter the market.

As the lender opens up there requirements and home values stabilize home sales will see a healthy growth. Asheville Real Estate has been strong this year over last but there seems to be a continuing monthly up and down following the stock market.