Pending home sales up just 0.2% in October

Diana Olick | @DianaOlick

Monday, 30 Nov 2015 | 10:00 AM ET

CNBC.comHigh prices and low inventory kept homebuyers at bay in October. Signed contracts to buy existing homes were essentially flat from September, eking out a 0.2 percent gain, according to the National Association of Realtors' monthly index of pending sales.

It was an improvement, however, as pending sales had fallen sequentially for the previous two months. Pending sales are 3.9 percent higher than in October 2014 and have seen annual gains for the past 14 months. These contracts are a forward-looking indicator of closed sales in November and December.

Getty Images

A pending sale sign in front of a home in Miami.

"Contract signings in October made the most strides in the Northeast, which hasn't seen much of the drastic price appreciation and supply constraints that are occurring in other parts of the country," said Lawrence Yun, the Realtors' chief economist. "In the most competitive metro areas — particularly those in the South and West — affordability concerns remain heightened as low inventory continues to drive up prices." 

After a busy spring, home sales have trended down slightly, but strong job growth in some markets has kept the overall pace improved from last year. The notable exceptions, according to the Realtors, are areas that are reliant on oil-related jobs.

Closed sales of existing homes fell 3.4 percent in October from September, a wider-than-expected drop.

Home prices in September were 5.5 percent higher than in September 2014, according to Black Knight Financial Services. Prices are now just 5.4 percent off their June 2006 peak.

5 HOME IMPROVEMENTS TO BEST INCREASE YOUR VALUE

Written by James on Sunday, 29 November 2015 10:06 pm on james.realtytimes.com

Many British folk find investing in home improvements to be a popular pastime.  Not only is the idea of making your home a more enjoyable place to live, but the potential for increasing your property’s value also has a big influence.

Now-a-days there are several TV shows, YouTube channels and magazines offering functional advice on how to improve your home’s value before you put it up for sale.

Here are five recommendations from us to help you do just that:

 Carpet

A worn-out carpet makes your property look aged and can even create odours.  The hallways and stairs in your home are particularly vulnerable to wear over the years simply due to the action they get.  If you have or had children and pets you’ll know very well about stains and tears that are easily created and multiplied over the years.

The solution to this is to simply fit a new carpet before you list your house for sale.  A new carpet will create a fresh feel to your home and increase the perceived value from those potential buyers when they’re taking a look around.

 Conservatory

A survey conducted by Zopa loans last year reported that 1,000 of their borrowers took out a loan specifically for home improvement.  The peer-to-peer lending company stated that the home improvements would add a cool 10% to the value of these homes on average – based on the owner’s estimates.

This worked out at a value increase of £29,879 on average, whilst the average return on investment was estimated to be at 80%, according to the Zopa survey.

Building a conservatory was the number one improvement, with the home owners surveyed receiving more than double in their return (108%).

A conservatory is an additional room for your home which brings an increase in value but it also comes with a downside in that you’ll be giving up garden space.  And unlike an extension on your house, you do not need planning permission for a conservatory provided you stay within half of the area of the land that your original house covered.

Extension

Additional space on your property increases its value.  You can do this across two floors if you want to.

 Before you add an extension though you are required to consult your neighbours and on top of that there are limits on the measurements you can expand your property by.

Back in April, Nigel Lewis claimed that an additional bedroom in your home could increase the value by as much as 10%, whilst a reception will take the valuation up by 12% on average.

 Exterior

One of the first things that your potential buyers will see is the exterior of your property.  This has a massive say in the first impression that they get.

The basics – clean windows, tidy bricks an tiles, a smart door, all leave an impression and affect the price of which your property is perceived.

It doesn’t take long to clean your windows, paint and fix any visible cracks on the outside of your house, yet these all make a big difference.

Channel 4 TV presenter and architect George Clarke is quoted on Truedor’s website as saying: “A front door plays a crucial role in the look and feel of a home; it is important to the homeowner.”

Garden

Before a potential buyer gets to your front door the first thing they will see is your front garden.  As mentioned above, giving them a good first impression can be all the difference in them both wanting to buy your property, and for what you value it at.

The Independent newspaper reported last summer that a garden can increase your property’s value by up to 10%.  A garden in London can increase the value of your home by even more.

 So take good care of your garden and spruce it up to give it a welcoming feel.