Pending Home Sales Rise by 6.3% in January!

The National Association of Realtors announced that pending home sales rose by 6.3% in January, fueled by bargain prices and lower interest rates. While its way to early to believe that the housing slump has passed, it is encouraging news. Many buyers are taking advantage of the lower prices and with interest rates hovering around 5%, many are discovering that mortgage costs can be cheaper than rent in some areas.

Personally, my activity in January was encouraging, with 3 contracts written for buyers and 2 closings. Most of the activity was with first time buyers, who have realized that its better to buy now with reduced prices and plenty of inventory to select from, rather than at the peak of the market when prices are high and there are less houses to choose from.

A lot of buyers have taken advantage of the $7,500 first time buyer tax credit, which expires on June 30th, 2009. So, although the economy may see tough right now, there are some great opportunities in the housing market. There's even a financing program perfect for those bank owned properties that need work - FHA's 203K Loan, which allows rehab costs to be rolled into the mortgage. I'm working on one with a buyer right now that, once completed, will give the buyer over $10,000 in instant equity, even in this so called "down" market.

So, even with a tough economy, there are opportunities for buyers in the housing market. If you've got solid employment and decent credit, buying a home may just be one of the best decisions to make in 2009!